Bitcoin and Ethereum remain steady in the ever-changing world of cryptocurrencies, with Bitcoin trading just below the $26,000 resistance mark and Ethereum lingering around $1,600. Notably, a renowned asset manager’s recent filing of a U.S. spot Ether exchange-traded fund (ETF) application has not had a meaningful impact on Ether’s price.
The larger cryptocurrency market displayed erratic trading patterns, particularly the top ten non-stablecoin cryptocurrencies. Solana suffered the most losses, while Toncoin made the most gains. In the traditional stock market, U.S. stock futures fell after a drop on Wall Street fueled by stronger-than-expected U.S. economic statistics, which stoked fears about inflation and likely interest rate hikes.
According to CoinMarketCap data, Bitcoin’s price fell somewhat, falling 0.05% in the last 24 hours to $25,764.75. Since last week, the world’s largest cryptocurrency has hovered in the $25,500 to $26,000 region.
The crypto market’s coldness is ascribed to low trader sentiment, fueled by regulatory uncertainty, notably in the United States. Delayed judgments by the U.S. Securities and Exchange Commission (SEC) on Bitcoin-backed ETF applications from large financial firms such as BlackRock have contributed to investors’ reduced risk appetite.
According to Markus Thielen, Head of Research & Strategy at digital asset service platform Matrixport, Bitcoin’s price may likely find support around $25,300 after losing the important support level of $26,000 on September 1st. Thielen underscored the potential of continued significant price volatility as macroeconomic factors such as rising U.S. bond yields and the value of the currency influence risk sentiment.
In a momentous milestone, the Financial Accounting Standards Board (FASB) of the United States voted in favor of a new accounting standard for crypto assets. From 2025, crypto enterprises will be required to use “fair value” accounting, which will entail an annual appraisal of the current value of their crypto assets distinct from other holdings. Cryptocurrency companies have welcomed this decision since it provides a more realistic approach to gauge their financial health.
Ether, on the other hand, has dropped 4.22% in the last seven days. Despite Cathie Wood’s Ark Invest registration for the first Ether ETF in the United States, Ether stayed reasonably stable at $1,632.60. Unlike Bitcoin ETF applications, which have traditionally increased the price of Bitcoin, Ether did not suffer a similar jump in interest for ETF applications.
Despite regulatory difficulties and market changes, the crypto market’s tenacity stands out as it adapts and matures. The continued development of Ethereum and changing market conditions will most certainly define the trajectory of cryptocurrencies in the next months.
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