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Bitcoin and Ether Prices Face Pressure Amid U.S. Interest Rate Concerns

Cryptocurrency markets face volatility as U.S. interest rate concerns impact Bitcoin and Ether prices, with focus on potential spot Ether ETF approval.
Published on 2024-05-23

Cryptocurrency Market Overview

Bitcoin prices experienced marginal movement on Thursday due to renewed concerns over high U.S. interest rates, which overshadowed recent rallies fueled by speculation on a potential spot Ether exchange-traded fund (ETF). These rate jitters caused a strong uptick in the dollar, applying pressure across cryptocurrency markets.

Bitcoin's Price Movement

Bitcoin slipped 0.35% within the last 24 hours, settling at $69,390. This movement saw Bitcoin return to a trading range it has occupied for much of the past two months, following a brief breakout earlier in the week.

Ether ETF Speculation Drives Market Focus

Ether maintained its position around two-month highs, boosted by anticipation regarding the U.S. Securities and Exchange Commission's (SEC) potential approval of a spot Ether ETF. Ether rose approximately 5.5% over the past day to $3,878.84, driven by reports that the SEC is reviewing ETF filings. The decision, expected soon, involves applications from major issuers like VanEck and ARK Investment Management.

Potential Impact of Ether ETF Approval

The approval of spot Ether ETFs in the U.S. could trigger significant market movements, with forecasts suggesting a possible 60% rally for Ether. This prediction is based on previous market reactions to spot Bitcoin ETF approvals earlier in the year, which led to a substantial surge in Bitcoin prices.

Broader Cryptocurrency Market Trends

Broader cryptocurrency markets relinquished gains from earlier in the week as fears of prolonged high U.S. interest rates increased. The Federal Reserve's meeting minutes indicated rising concerns about persistent inflation, with some members prepared to increase rates further if necessary.

Altcoin Performance Amid Rate Jitters

Altcoin prices saw declines on Thursday, with SOL dropping 2.5% and XRP losing 1%. Among meme tokens, SHIB decreased by 0.5%, while DOGE managed a slight increase of 0.3%. These movements reflect the broader market's sensitivity to interest rate fluctuations and economic signals.

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