Bitcoin and Coinbase fell early Tuesday as the cryptocurrency industry looked to the launch of an exchange-traded fund tied to Ethereum as a potential catalyst.
Bitcoin hit an all-time high of nearly $74,000 in mid-March on the back of growing interest from new spot exchange-traded funds, but prices have since fallen.
“Bitcoin has risen and is rebounding from the lower boundary of the descending channel, possibly moving towards the upper limit of $67,000. However, cautious buyers may prefer to wait until the price rises above $72,000-73,000, the pivot area of the past four months, to confirm the start of a new impulsive growth wave,” said Alex Kuptsikevich, analyst at FxPro.
Shares of cryptocurrency exchange Coinbase Global fell 1.8% in trading on Tuesday after Chief Executive Brian Armstrong said he plans to sell 23,075 shares of the company worth about $5.4 million, according to a regulatory filing on Monday.
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Armstrong's sale of Coinbase shares was made pursuant to a Rule 10b5-1 trading plan, in which stock transactions are executed automatically when preset conditions, such as price and volume, are met. The plan is intended to eliminate any benefits insiders may gain from knowing material nonpublic information.
ether,
Bitcoin, the second-largest cryptocurrency, fell 1.2% to $3,444, but is up about 80% over the past 12 months.
The U.S. Securities and Exchange Commission recently approved a significant rule change that will allow for the trading of a spot Ethereum exchange-traded fund (ETF), with SEC Chairman Gary Gensler telling senators during a recent budget hearing that final approval of the ETF is expected this summer.
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“Gary Gensler had previously suggested trading might not begin until September, but market participants are expecting a quicker process, with trading commencing within a few weeks,” said Matteo Greco, research analyst at Finechia International.
Smaller cryptocurrencies, or altcoins,
Solana
0.1% increase,
Cardano
It increased by 2.5%
Dogecoin
It decreased by 2.4%.
Email Adam Clark at adam.clark@barrons.com.
