Bitcoin prices fell on Friday, pulling away from recent highs on concerns about high interest rates in the U.S. The drop overshadowed a significant development in the U.S. approval of an exchange-traded fund (ETF) that directly tracks Ethereum.
Bitcoin has fallen 3.2% over the past 24 hours to settle at $67,415.9 after some gains earlier this week. Crypto expert Michaël van de Poppe predicts further declines, suggesting a near-term target of around $61,000 to $63,000.
Consolidation Phase: Bitcoin’s Current State
The leading cryptocurrency, Bitcoin, is currently in a range-bound consolidation phase. Analyst Michael van de Poppe believes that this phase may continue for some time and that Bitcoin’s value may test the $61,000 to $63,000 levels.
While this may not excite short-term traders looking for action, it does provide an opportunity for long-term investors to build positions at favorable prices.
Ethereum surpasses Bitcoin
Van de Poppe's analysis suggests that the shift in capital from Bitcoin to Ethereum is contributing to Bitcoin's long-term stability. With the approval of all eight spot Ethereum ETFs, investors are diversifying their cryptocurrency portfolios and injecting significant capital into Ethereum in favor of the cryptocurrency.
This shift in investor preferences has created an interesting dynamic between Bitcoin and Ethereum and has reshaped the broader market environment.
Ethereum Price Analysis
Currently, Ethereum is trading at $3,702.11, down 5.42% in the past 24 hours. Despite this drop, ETH trading volume surged 68%, and its market cap hit $445 billion.
Despite the recent volatility, Ethereum remains strong following a sharp rise from October 2023 to March 2024. It has seen an increase of over 35% this year and a staggering 69% increase over the past 12 months.
Also see: $1.4 Billion Bitcoin Whale Accumulation Fueling Bull Market: $74,000 Break Near?
Do you agree with analysts' Bitcoin price predictions? Why is this so and why not?
