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Drops to $69,000, But Ether Holds Gains on Investing.com ETF Hype
Investing.com– The price of Bitcoin fell slightly on Wednesday as the wait for further signals on U.S. interest rates saw traders lock in gains from a recent rally on optimism in an Ether exchange-traded fund.
The world’s second-largest cryptocurrency settled at more than two-month highs after reports this week suggested some progress toward the Securities and Exchange Commission’s approval of spot ETFs. The regulator will make a highly anticipated decision on the potential approval of ETFs later this week.
But warnings of sticky U.S. inflation and high interest rates for a prolonged period have kept traders wary of cryptocurrency markets and also caused Bitcoin to retreat from recent gains.
fell 1.5% over the past 24 hours to $69,880.1 as of 01:33 ET (0533 GMT).
Ether Settles to Over 2-Month Highs, Focus on SEC ETF Decision
Ether rose 3% in the past 24 hours to $3,755.37, nearing its highest level since early March. The token rose as much as 18% on Monday.
Media reports say the SEC on Monday asked exchanges to finalize their filings for spot Ether ETFs, ahead of a crucial decision on their approval later this week.
The move marks some progress toward ETF approval, although the SEC may still reject the applications, as it has not engaged with any of the applicants so far.
However, analysts said the SEC’s move reflects a higher likelihood of an eventual approval of a spot Ether ETF. The approval is expected to spark a rally in cryptocurrency prices, similar to that seen with the approval of Bitcoin spot ETFs earlier this year.
Bitcoin struggles to maintain gains, further signals from the Fed are awaited
The token had risen as high as $71,000 on Tuesday, before falling back to a trading range between $60,000 and $70,000 seen for most of the past two months.
Crypto sentiment, despite optimism about a spot Ether ETF, was still limited by lingering US interest rate concerns.
Several Fed officials this week warned that the central bank needs more confidence that inflation is falling before it can start cutting interest rates.
Attention has now turned to , for further indication of when the central bank might start cutting interest rates.
High rates for longer periods do not bode well for cryptocurrency markets, as they limit the attractiveness of high-risk and highly speculative assets.
Cryptocurrency Price Today: Altcoin Rally Cools Down
Broader altcoin prices also cooled as Bitcoin retreated, while traders remained largely biased towards Ether across the altcoin complex. The resilience has also limited any major upside in cryptocurrencies.
it fell 0.2%, while it fell 0.5%. Among meme coins, they rose 3.1% while they rose 1%.