May 27 2024: Bitcoin prices remained stable on Monday amid ongoing concerns over high interest rates ahead of key U.S. inflation data due later this week. In contrast, Ether experienced a significant rally fueled by progress towards the approval of a spot exchange-traded fund (ETF).
Broader cryptocurrency markets were also relatively quiet, as traders continued to favor the dollar, driven by diminishing hopes for interest rate cuts by the Federal Reserve this year.
Bitcoin dropped 0.3% in the past 24 hours to $68,760.3 by 01:04 ET (05:04 GMT), staying within the trading range it has maintained for the past two months.
However, Ether, the world’s second-largest cryptocurrency, outperformed significantly, surging 4.4% to $3,913.79, nearing its highest level in over two months.
Ether Gains on SEC Spot ETF Approval
Ether saw a substantial boost over the weekend after the Securities and Exchange Commission (SEC) approved applications from several major exchanges to list ETFs that directly track Ether’s price.
This approval allows the SEC to begin engaging with fund operators such as VanEck, ARK Investment Management, and seven other issuers who have applied to list their spot Ether ETFs.
Analysts predict that the approval of spot ETFs will spark a strong rally in Ether, mirroring the surge seen in Bitcoin following the approval of spot Bitcoin ETFs earlier this year.
However, Bitcoin has remained relatively stagnant in recent months after the initial excitement over ETFs waned. Capital inflows into Bitcoin ETFs have also stagnated in recent weeks.
Crypto Market Today: Altcoins Muted Ahead of PCE Data
Concerns over persistently high U.S. interest rates have pressured crypto markets in recent weeks, especially following warnings from several Federal Reserve officials that sticky inflation would delay any plans to cut rates.
This sentiment kept price movements in altcoins relatively subdued. XRP and SOL fell by 2% and 0.8%, respectively, while meme tokens DOGE and SHIB dropped 4.3% and 1.6%, respectively.
The focus this week is on the Personal Consumption Expenditures (PCE) price index data, the Fed’s preferred inflation gauge. This reading is expected to influence expectations for interest rates.
Traders have largely ruled out the possibility of a rate cut in September, according to the CME Fedwatch tool.
