Bitcoin‘s price remained relatively stable on Monday amid ongoing concerns about high interest rates ahead of crucial U.S. inflation data set to be released later this week. In contrast, Ether extended its rally following significant progress toward the approval of a spot exchange-traded fund (ETF).
Broader cryptocurrency markets saw little movement, as traders favored the dollar due to diminishing hopes for interest rate cuts by the Federal Reserve this year. Bitcoin experienced a slight decline of 0.3% over the past 24 hours, trading at $68,760.3 by 01:04 ET (05:04 GMT), maintaining a trading range established over the last two months.
Ether, the world’s second-largest cryptocurrency, surged 4.4% to $3,913.79, nearing a two-month high. This performance was bolstered by the U.S. Securities and Exchange Commission’s (SEC) approval of applications from several major exchanges to list ETFs that directly track Ether’s price.
SEC Approval Boosts Ether
The SEC‘s approval for the listing of spot Ether ETFs has paved the way for the commission to engage with fund operators such as VanEck, ARK Investment Management, and seven other issuers who have applied for similar listings. Analysts predict that this approval could trigger a significant rally in Ether, akin to the surge Bitcoin experienced following the approval of spot Bitcoin ETFs earlier this year.
However, Bitcoin has seen little movement in recent months after the initial excitement over the ETFs waned. Capital inflows into Bitcoin ETFs have also stagnated recently.
Altcoins and Market Sentiment
The anticipation of persistent high U.S. interest rates has exerted pressure on cryptocurrency markets in recent weeks. Several Federal Reserve officials have indicated that stubborn inflation could delay any plans to reduce rates, keeping altcoin prices largely subdued. XRP and SOL fell by 2% and 0.8%, respectively. Meme tokens such as DOGE and SHIB also declined, with DOGE dropping 4.3% and SHIB losing 1.6%.
This week, the market’s focus is on the Personal Consumption Expenditures (PCE) price index data, the Federal Reserve’s preferred inflation measure. The outcome of this data is expected to influence expectations regarding interest rates. Nonetheless, traders have largely ruled out the possibility of a rate cut in September, as reflected by the CME FedWatch tool.
