Markets
Ethereum Set to Rise 60% After ETF Approval, Expert Says: ‘Market Is Expecting Fireworks’
May 24, 2024 5:26 am | 2 minutes reading
The price of Ethereum (CRYPTO: ETH) could rise 60% after the first Ethereum exchange-traded funds are approved by US regulators, according to a leading crypto trading firm.
What happened: The Securities and Exchange Commission approved the first Ethereum spot ETFs in the US. This decision could lead to a significant increase in the value of the second-largest cryptocurrency, according to a publish on Telegram from crypto trading firm QCP Capital.
QCP Capital predicted a 60% increase in the value of Ethereum after the approval of the ETF. News of the potential approval has already caused the price of Ethereum to rise almost 20% since Monday.
“With Friday’s implied volatility above 100%, the market is expecting fireworks,” QCP wrote.
QCP Capital also highlighted that the approval of the Bitcoin (CRYPTO: Bitcoin) ETFs in January led to a significant increase in the value of Bitcoin. Since then, Bitcoin has reached an all-time high of over $73,000. This has also resulted in a substantial increase in Ethereum purchases, with data from CryptoQuant showing an 85% increase in Ethereum purchase volume since May 1st.
Why does this matter: The potential approval of Ethereum ETFs by the SEC could have a significant impact on the cryptocurrency market. The approval of Ethereum ETFs would open the gateway for conventional investors to access the cryptocurrency, potentially leading to an increase in its value. This development may also affect other cryptocurrencies such as Solanawhich may have a harder time outperforming Ethereum after ETF approval.
Furthermore, the potential approval of Ethereum ETFs could have political implications. As Katie Wood predicted, encryption could be a significant issue in the 2024 White House race. approval of Ethereum ETFs could further solidify the importance of cryptography in the political landscape.
Furthermore, the potential approval of Ethereum ETFs could bring back the “animal spirits”For the crypto market as predicted by a crypto trader.
Price Action: Ether is trading at $3,672, down almost 3% in the last 24 hours, however, the coin is up almost 20% this week and 56.08% year to date.
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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