The cryptocurrency market has been a rollercoaster ride in recent days, especially for Bitcoin (BTC) and Ethereum (ETH) prices. Bitcoin, after dropping to $63,000 over the weekend, made a comeback with a 3% gain at the start of the week, reaching $66,964. Despite a slight 2.5% dip over the past week, Bitcoin has surged impressively by 31% over the last month, largely fueled by bullish sentiments among traders.
Bitcoin and Ethereum see a 3% gain to start the week
A significant event looming on the horizon is the upcoming Bitcoin halving. This event, expected to occur around April 19 according to estimates from NiceHash, will see mining rewards cut from 6.25 to 3.125 BTC. However, the exact date of the halving remains fluid as it depends on reaching the 210,000-block milestone rather than following a fixed calendar schedule.
This uncertainty surrounding the halving has contributed to the recent volatility in Bitcoin’s price, with investors carefully gauging its potential impact on the market. Andy Bromberg, CEO of Beam, highlighted the likelihood of continued volatility in Bitcoin’s price leading up to the halving. Investors are grappling with the challenge of accurate pricing in the halving’s effects, leading to fluctuations in the cryptocurrency’s value over the past week.
In contrast, Ethereum has been on a positive trajectory, registering a 2.6% gain in the last 24 hours and reaching $3,452 at the time of writing. While Ethereum came close to breaching the $3,000 mark last week, it has since demonstrated resilience and steady growth, posting a notable 17% increase in price over the past month.
Ethereum’s positive momentum amid regulatory uncertainties
Amidst Ethereum’s upward momentum, regulatory developments have cast a shadow of uncertainty. The U.S. Securities and Exchange Commission (SEC) recently announced yet another delay in its decision regarding the Grayscale Ethereum Trust (ETHE) conversion into a spot Ethereum ETF. The SEC’s decision has been postponed until May 30, prolonging the waiting period for market participants eagerly anticipating Ethereum ETF approvals.
Market observers and industry experts are closely monitoring these regulatory updates, particularly regarding spot Ethereum ETFs. Matt Hougan, Bitwise’s Chief Information Officer, pointed out on Twitter that the timing of spot Ethereum ETF launches could influence their asset accumulation. He suggested that launching in December might attract more assets compared to a launch in May, as traditional finance (TradFi) players may require additional time to acclimate to Bitcoin ETFs.
The cryptocurrency market is navigating through a period of heightened volatility, driven by factors such as the upcoming Bitcoin halving and regulatory uncertainties surrounding Ethereum ETF approvals. Investors and stakeholders are treading cautiously, analyzing market movements and regulatory announcements to make informed decisions amidst the evolving landscape of digital assets.
