Bitcoin remained relatively unchanged on Monday as worries about high interest rates lingered ahead of crucial U.S. inflation data later this week, while Ether continued its upward trajectory driven by progress towards a spot exchange-traded fund (ETF).
In the broader cryptocurrency market, prices remained subdued, with traders maintaining a preference for the dollar amidst diminishing hopes of interest rate cuts by the Federal Reserve this year.
As of 07:49 ET (11:49 GMT), Bitcoin had dipped 1.2% over the past 24 hours to $68,354.5, holding within a trading range established over the past two months. Meanwhile, Ether, the world’s second-largest token, surged 2.2% to $3,897.5, nearing two-month highs.
Ether’s rally was fueled by the Securities and Exchange Commission’s approval of applications from several major exchanges for the listing of ETFs directly tied to its price. This approval paves the way for the SEC to engage with fund operators, including VanEck and ARK Investment Management, among others, who have applied to list spot Ether ETFs. Analysts anticipate that the approval of spot ETFs could trigger a significant surge in Ether, akin to the one witnessed in Bitcoin after the approval of spot Bitcoin ETFs earlier this year.
In contrast, Bitcoin has experienced stagnant performance in recent months following the initial excitement surrounding ETFs. Moreover, capital flows into Bitcoin ETFs have stagnated in recent weeks.
Concerns about persistently high U.S. interest rates exerted pressure on cryptocurrency markets in recent weeks, particularly after several Federal Reserve officials cautioned that stubborn inflation would postpone any plans for rate cuts. Consequently, price movements in altcoins remained subdued, with XRP declining while SOL showed resilience. Meme token DOGE experienced a 1.6% decline, whereas SHIB saw a modest increase of around 3%.
The focus this week centers on the Personal Consumption Expenditures (PCE) price index data, the Fed’s preferred gauge of inflation. The reading is expected to influence expectations for interest rates. Nonetheless, traders were observed largely pricing out bets on a rate cut in September, according to the CME Fedwatch tool.
