Gairika Mitra
Analysts are forecasting a fluctuation for Bitcoin within the range of $62,000 to $73,000, while Ethereum’s could range between $3,000 and $4,200. These projections reveal potential trading opportunities owing to the strengthening trend in the Ethereum and Bitcoin exchange rates.
Impact of Bipartisan Support on Bitcoin and Future Trends for Ethereum ETFs
Speaking exclusively to The Shib Daily, Ryan Lee, Chief Analyst at Bitget Research, shared that bipartisan support from both political parties – Democrats and Republicans – could help boost Bitcoin’s value.
Regarding Ethereum, Lee anticipates there is a possibility that traditional funds might directly purchase ETH in the future. “ETH faced pressure due to continuous outflows from Grayscale. Based on the performance following the approval of BTC ETFs, ETH might experience a decline in the two weeks after the ETH ETF approval.”
The Ethereum ETFs kickstarted last week with a whopping $1.07 billion in shares, with Grayscale Ethereum Trust, iShares Ethereum Trust, and Fidelity Advantage Ether ETF being the most actively traded.
Michaël van de Poppe, a well-known crypto analyst, revealed that there was a decrease in outflow on the fifth day of trading on the ETH ETF. “$210 million rolled out of Grayscale’s Trust, while $112 million came in the other ETFs. This week we’re stagnating with the heaviness of the outflow –> consolidation,” he shared.
He later posted that $ETH had a “significant correction overnight.”
In his most recent post about Ethereum flows as of this writing, he said the markets “saw a net INflow of $33 million for $ETH.”
However, despite the declining prices of Ethereum, Lee believes that Ethereum’s price could rebound once the ETFs begin to attract more inflows.
Market Anticipates Fed Rate Cuts and Their Impact on Crypto Liquidity
According to CME data, the market estimates a 100% probability of a rate cut by the Federal Reserve in September, with even a 10% probability of a 50 basis point cut. Lee noted that August is the best time of the year to be prepared for the expected rate cuts, which help in releasing dollar liquidity. “This liquidity might flow into the crypto market through BTC and ETH ETFs,” he told The Shib Daily.
This month, the overall stablecoin market cap surpassed $164 billion, an increase from $162 billion, showcasing a net capital inflow into the crypto space. “The growth of stablecoins mainly represents the actions of traditional funds and large holders, who are gradually entering the crypto market via USDC and USDT, seeking larger future gains,” Lee shared.
Shivam Thakral, CEO of BuyUcoin, mentioned to The Shib Daily that stablecoins dominate the market vitality with around $56.9 billion, making up to 90.98% of the global crypto trading volume.
When asked what that means for cryptocurrencies like Bitcoin, Thakral told The Shib Daily, “Bitcoin retains a strong 54.85% market dominance. As confidence in Bitcoin strengthens, particularly with government initiatives like the US Strategic Bitcoin Reserve, the outlook for the crypto market remains positive, indicating potential recovery.”
As of 9.02 a.m. EST on Wednesday, Bitcoin and Ethereum are trading at $$66,392.45 (up by 0.83% in the last 24 hours) and $3,319.31 (up by 0.42% in the last 24 hours), respectively.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
