Bitcoin and Coinbase Fall as Crypto Sector Awaits Ether ETF Launch
Bitcoin and Coinbase were falling early on Tuesday, causing concern in the crypto sector. The drop in Bitcoin’s price comes after hitting a record high near $74,000 in mid-March. The market is now looking towards the launch of exchange-traded funds tied to Ether as a potential catalyst for a rebound.
According to analyst Alex Kuptsikevich, Bitcoin is currently bouncing off the lower boundary of a downward channel and could be moving towards an upper boundary at $67K. However, cautious buyers may prefer to wait for confirmation with the price rising above $72-73K, signaling the start of a new wave of growth.
In Tuesday trading, Coinbase Global was down 1.8%, with CEO Brian Armstrong planning to sell 23,075 shares in the company worth around $5.4 million. Armstrong’s sale is being conducted under a Rule 10b5-1 trading plan to ensure fairness and compliance with insider trading regulations.
Ether, the second-largest cryptocurrency, was also down 1.2% at $3,444 but has seen an impressive 80% rise over the past 12 months. The Securities and Exchange Commission recently approved rule changes to allow spot Ether exchange-traded funds to trade, with final approvals expected this summer.
Market participants are eagerly awaiting the start of trading for Ether ETFs, with some expecting it to begin in a few weeks despite previous indications from SEC Chair Gary Gensler that it might not start until September.
In addition to Bitcoin and Ether, smaller altcoins like Solana, Cardano, and Dogecoin were also experiencing mixed performance in the market. Solana was up 0.1%, Cardano rose 2.5%, and Dogecoin dropped 2.4%.
Overall, the crypto market is experiencing volatility and uncertainty, with investors closely watching the developments in Bitcoin, Ether, and other cryptocurrencies. For more updates on the crypto sector, stay tuned to Barrons.com.
