Published on juli 28, 2024, 12:36 am
Image source: Fox News
```json [ { "TLDR": "The price of ETH dropped over 8% in the last 24 hours due to sell-the-news sentiment following the introduction of Ethereum ETFs. This decline erased recent gains, with outflows totaling $113.3 million from spot ETFs and a shift towards lower-fee alternatives. Market conditions, including Bitcoin reimbursements and tech stock fluctuations, have also contributed to Ether's losses." } ] ```
The price of ETH has experienced a significant drop, decreasing by over 8% in the last 24 hours. This decline can be attributed to the launch of Ethereum ETFs, which has sparked a sell-the-news sentiment among investors.
Following the introduction of eight spot Ether ETFs on the New York Stock Exchange, Ether’s value plummeted to around $3,170 on July 25. This sharp downturn erased nearly two weeks’ worth of gains and signified a typical “sell-the-news” reaction in the Ethereum market.
“Sell-the-news” is a common strategy where traders sell off assets right after a highly anticipated event or news release, regardless of its positivity. This phenomenon indicates that the event had likely already been factored into the prices leading up to it.
Similarly observed with Bitcoin earlier this year after the launch of its spot ETFs in the US, Ether’s recent decline was compounded by substantial outflows totaling $113.3 million from its spot ETFs on their second day of trading on July 24. One key contributor to these outflows was withdrawals from Grayscale’s Ethereum Trust.
Interestingly, while seven out of eight newly launched spot Ether ETFs attracted net inflows, Grayscale’s Ethereum Trust experienced immense outflows amounting to $326.9 million due to its higher fee structure. Traders seemed to be shifting funds towards lower-fee alternatives like Grayscale’s Ethereum Mini Trust.
The broader market conditions, such as Mt. Gox’s Bitcoin reimbursements and declining megacap technology shares, have also impacted Ether’s recent losses. The correlation between Ether and Bitcoin remains strong at around 0.90, indicating that Ether tends to follow Bitcoin’s market trends closely.
Today’s negative movement in Ether prices is further exacerbated by a growing risk aversion sentiment within the market amid concerns over tech stock fluctuations and general economic uncertainties.
Overall, while traders anticipated a bullish trend post-ETF launch, unexpected declines caught many off guard. It is crucial for investors to conduct thorough research and make informed decisions when navigating through volatile cryptocurrency markets as they inherently involve risks and uncertainties.
Original article posted by Fox News
