Cryptocurrencies Decline as Ether ETFs Debut and Mt. Gox Transfers More Bitcoin to Creditors
Analyst Devin Ryan from JMP Securities anticipates a gradual and modest adoption of Ether compared to Bitcoin ETFs. He notes that Bitcoin ETF adoption is still in its early stages, with significant capital yet to be activated.
Antoni Trenchev, co-founder of Nexo, warns of potential volatility in Ether. Drawing parallels to the launch of Bitcoin ETFs in January, Trenchev recalls how Bitcoin initially surged to a record high, then dropped by 20% before climbing to another peak.
Ben Kurland, CEO of the crypto research platform DYOR, emphasizes that like Bitcoin ETFs, it will take time for inflows into ETH ETFs to create enough supply shock to impact the markets significantly.
The decision of President Joe Biden to withdraw from the presidential race introduces uncertainty into the market, according to Kurland. Investors are now eager for clarity on Vice President Kamala Harris’s stance on crypto and the possibility of her gaining ground in the polls.
Trenchev echoes these sentiments, attributing Bitcoin’s decline from recent highs to the unexpected entry of Kamala Harris into the U.S. presidential race. This development adds a layer of uncertainty to an election that previously seemed to lean towards Donald Trump and his pro-crypto position.
