Investors Focus on GDP and PCE, Crypto Market Consolidates
After the launch of the spot Ethereum ETF in the U.S. on Tuesday, the crypto market entered a consolidation phase on Wednesday.
Traders are now focusing on the U.S. Q2 GDP data on Thursday and the June PCE inflation data on Friday, hoping that positive news will prompt the Fed to cut interest rates in September. The CME FedWatch tool currently indicates a 100% probability of a rate cut in September.
According to Bitpush data, Bitcoin attempted to break the $67,000 resistance in the early trading session but faced bearish pressure, falling back to the $66,000 support level. As of press time, Bitcoin is trading at $65,416, down 0.87% over the past 24 hours.
Altcoin market performance was mixed on Wednesday, with most of the top 200 tokens by market cap posting losses.
Among the gainers, SATS (1000SATS) rose the most, up 16.7%, followed by Jito (JTO) up 12.4%, and Flow (FLOW) up 11.6%. Leading the decliners were Mog Coin (MOG) down 11.4%, Convex Finance (CVX) down 10.5%, and ENS down 8.5%.
The total market cap of cryptocurrencies currently stands at $2.39 trillion, with Bitcoin’s market dominance at 54.4%.
In the U.S. stock market, lackluster earnings reports from tech giants like Alphabet and Tesla raised investor concerns about the “Magnificent Seven” stocks losing momentum, leading to the worst day in months for U.S. stocks. The S&P 500, Dow Jones, and Nasdaq indexes closed down 2.31%, 1.25%, and 3.64%, respectively.
Spot Ethereum ETF Listing Impact Absorbed by Market
According to data compiled by The Block Pro Research, the total trading volume of U.S. spot Ethereum ETFs reached approximately $951 million on Wednesday. On their first day of trading on Tuesday, these funds had a trading volume of $1.054 billion.
Pat Doyle, a blockchain researcher at Amberdata, stated, “Compared to BTC ETFs, the first-day performance of Ethereum ETFs was within expectations. We set our estimates by analyzing the market cap of ETH relative to BTC. ETH’s market cap is currently about 30% of BTC’s. Conservatively, ETH trading volume is around 20-30% of BTC trading volume.”
Despite the successful debut of spot ETFs on Tuesday, ETH’s performance was poor, dropping to $3,300 and falling nearly 4% over the past 24 hours. Compared to Bitcoin, ETH also hit its lowest price in two months. This suggests that the ETF launch was largely priced in, especially since key ETF documents were approved by the SEC in May.
$66,000 as Key Support Level
After falling below $65,500 on Tuesday, Bitcoin rebounded to $66,500, but potential selling pressure from Mt.Gox creditors hindered further gains. Bitstamp announced it would start disbursing funds to creditors from Thursday.
Analysts at Secure Digital Markets noted, “There is a general belief that creditors will sell their Bitcoin as soon as they receive it, putting downward pressure on BTC’s price. The market is eagerly awaiting a bullish trigger to break out of the current trading range. Donald Trump’s upcoming speech on July 25 in Nashville could be a catalyst, especially if he announces plans to adopt Bitcoin as a national reserve.”
According to market analyst Emperor, after the recent pullback to $63,500, the $66,000 level has become key support.
Emperor stated, “Initially, it was thought that selling would start at $63,500, but this position turned out to be a local bottom for selling. The $66,000 level was repeatedly broken and then retested as support, so BTC will spend a lot of time here accumulating. $67,000 was also broken at one point, indicating it’s no longer a strong resistance level, but we need some positive news to break through and establish it as support. The best strategy now is to be ready to buy at appropriate dip levels and accumulate through September.”
Market analyst Elija Boom mentioned on the X platform that Bitcoin traders don’t need to wait until September, as he expects the uptrend to resume within a week once the Mt. Gox Bitcoin distribution to creditors is completed.