Crypto Market Sentiment in ‘Neutral’ Mode as Bitcoin, Altcoin Rebound Stalls

UTC by Godfrey Benjamin · 3 min read
Crypto Market Sentiment in ‘Neutral’ Mode as Bitcoin, Altcoin Rebound Stalls
Photo: Depositphotos

For Ethereum, Kaiko Research stated that the approval of the Ethereum ETF will lead to a long-term increase in price.

The sentiments in the broader crypto market recently dwindled from extreme greed to neutral as rebounds from Bitcoin (BTC) and altcoins stagnated. Specifically, the Fear & Greed Index is showing 55.03.

Sentiments for Bitcoin and Altcoins Drop

At press time, Bitcoin is trading at $65,998, demonstrating a decline of 0.13% in the past day. In contrast, it has recorded a 4.7% drop in the past week. In a similar move, Ethereum (ETH), a top altcoin in the market saw its price decrease by 0.3% in the past 24 hours to trade at $3,542.

Solana (SOL), another popular altcoin, increased by only 1.3% in the past 24 hours to trade at $146. Binance Coin (BNB) was not left out of the dwindling sentiments in the market as the price decreased by 0.37%. In the memecoin sector, the price of Dogecoin (DOGE) decreased by 1.97% in the past 24 hours to $0.1331. The Shiba Inu (SHIB) meme coin also followed this downward movement, with a 3.09% decline.

This decline in the price of the leading cryptocurrency and other altcoins reflects dwindling interest from investors. What is surprising is that it is coming at a time when expectations for the launch of an Ethereum Exchange-Traded Fund (ETF) are high. Typically, the approval of eight ETFs by the US Securities and Exchange Commission (SEC) is expected to spur an increase in many cryptocurrencies in the long term.

This expectation is based on the premise that ETFs are regarded as investment vehicles that offer a familiar platform to mainstream investors. Easier access through crypto ETFs could bring a new wave of investors to the digital assets ecosystem. In the case of Bitcoin, following the launch of spot ETFs in January, the cryptocurrency soared to an all-time high above $73,000.

A recent report from Coinspeaker revealed US spot Bitcoin ETFs attracted net inflows for 18 consecutive days. So far, the net inflow for all the ETFs combined has reached $15.56 billion. This brings the total Assets Under Management (AUM) to $62.34 billion. This shows investors are­ increasingly seeking e­xposure to Bitcoin through regulated ETFs.

Delay in Ethereum ETFs Potential Launch

For Ethereum, Kaiko Research stated that the approval of the Ethereum ETF will lead to a long-term increase in price. Kaiko emphasizes that this move clears out a big chunk of the regulatory uncertainty around Ethereum’s classification, opening the door for the cryptocurrency’s long-term, steady growth. However, this forecast is yet to materialize for Ethereum price and other cryptocurrencies.

At the moment, the SEC is yet to respond to the S-1 filing from spot Ethereum issuers. While expectations are high that it will happen soon, SEC’s Chairman Gary Gensler declined to comment on the exact timeline.

An eventual approval might fuel a trend shift that can help return the sentiment to “Greed” or “Extreme Greed”.

Altcoin News, Bitcoin News, Cryptocurrency News, News
Related Articles