Investors focus on GDP and PCE reports, crypto markets consolidate after ETH ETF launch

Crypto markets entered consolidation mode on Wednesday following the launch of the U.S. Spot Ethereum ETF on Tuesday.

Traders are currently focusing on Thursday's U.S. second-quarter GDP data and Friday's June PCE inflation data, hoping that these positive news will prompt the Federal Reserve to cut interest rates in September. CME's FedWatch tool currently shows a 100% chance of a rate cut in September.

Bitcoin attempted to break through the $67,000 resistance level in the early trading session, but encountered resistance from bears and fell back to the $66,000 support level. At press time, Bitcoin was trading at $65,416, down 0.87% in 24 hours.

The altcoin market had a mixed performance on Wednesday, with the vast majority of the top 200 coins by market capitalization posting losses.

Among the rising coins, SATS (1000SATS) saw the largest increase, up 16.7%, followed by Jito (JTO), which rose 12.4%, and Flow (FLOW), which rose 11.6%. Mog Coin (MOG) led the losses, down 11.4%, Convex Finance (CVX) fell 10.5%, and ENS fell 8.5%.

The current overall market value of cryptocurrency is US$2.39 trillion, and Bitcoin’s market share is 54.4%.

In terms of U.S. stocks, technology giants such as Alphabet/Tesla reported lackluster financial results, causing investors to worry that the "Big Seven" that pushed up U.S. stocks may be losing momentum. U.S. stocks suffered their worst day in months. As of the end of the day, the S&P 500 Index, Dow Jones Index, and Nasdaq Index all ended lower, down 2.31%, 1.25%, and 3.64% respectively.

News of the listing of the spot Ethereum ETF has been digested by the market

According to data compiled by The Block Pro Research, the cumulative trading volume of the U.S. spot Ethereum ETF on Wednesday was approximately $951 million. The funds traded $1.054 billion in their trading debut on Tuesday.

Amberdata blockchain researcher Pat Doyle said: “Compared to the BTC ETF, the Ethereum ETF’s first-day performance was within expectations. We set our estimates by analyzing the market cap of ETH versus BTC. The market cap of ETH It is currently about 30% of BTC. A conservative estimate is that ETH trading volume is about 20-30% of BTC trading volume. "

Although the debut of the spot ETF was quite successful, ETH did not perform well and fell to $3,300 at one point. , down nearly 4% in the past 24 hours. ETH prices also hit their lowest levels in two months compared to Bitcoin. This suggests that the launch of ETFs has largely been priced in, especially since key ETF filings were approved by the SEC in May.

$66,000 as key support

Bitcoin rebounded to $66,500 after falling below $65,500 on Tuesday, but pressure from a potential sell-off in Mt. Gox prevented continued gains. Bitstamp said it would start releasing funds to creditors on Thursday.

Secure Digital Markets analysts said: "There is a widespread belief that creditors will sell Bitcoin as soon as they receive it, which has put downward pressure on the price of Bitcoin. The market is eagerly awaiting bullish triggers to break out of the current trading range . Donald Trump’s upcoming speech at the Nashville conference on July 25th could be a catalyst, especially if he announces plans to use Bitcoin as a national reserve.”

According to market analyst Emperor. Following the recent pullback to $63,500, $66,000 has emerged as a key support level.

Emperor analysts said: “Initially people thought that the sell-off would start from 63,500, but this level was the local bottom of the sell-off. The 66,000 level was broken multiple times and then retested as support. BTC will spend a lot of money here. Time and accumulation. $67,000 was also broken at one point, so it’s safe to say it’s no longer a strong resistance level, but we need some positive news to break it and establish it as a support level, and the best option right now is to be ready. Buy at the right dip levels and continue to accumulate into September. Market analyst Elija Boom said on the X platform that Bitcoin traders do not have to wait until September because he sees that once Mt. Gox Bitcoin’s distribution to creditors is complete and the uptrend will resume within a week.

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