Bitcoin price showed minimal movement on Monday amid concerns about high interest rates ahead of upcoming U.S. inflation data. Ether, on the other hand, experienced a strong rally due to progress towards a spot exchange-traded fund.
Overall crypto prices remained relatively calm as traders favored the dollar over uncertainties regarding potential interest rate cuts by the Federal Reserve in the near future. Bitcoin decreased by 0.3% in the last 24 hours, reaching $68,760.3 by 01:04 ET (05:04 GMT), remaining within its established trading range of the past two months.
Meanwhile, Ether, the second-largest cryptocurrency, stood out with a 4.4% rally to $3,913.79, approaching a two-month high. The boost for Ether came after the Securities and Exchange Commission approved applications from major exchanges to list ETFs directly tracking its price.
This approval signals an opportunity for the SEC to collaborate with fund operators like VanEck, ARK Investment Management, and seven other issuers who have sought to list their spot Ether ETFs. Analysts anticipate that this approval could lead to a significant surge in Ether value, akin to the impact seen on Bitcoin when spot Bitcoin ETFs were approved earlier this year.
Unlike Ether’s positive momentum, Bitcoin has been relatively stagnant in recent months following the initial excitement around ETFs. Capital inflows into Bitcoin ETFs have also shown signs of stagnation in recent weeks.
Concerns about persistently high U.S. interest rates have been weighing on the crypto market, particularly after various Federal Reserve officials warned about the prolonged effects of inflation, delaying any potential rate cuts. This uncertainty has kept price movements in altcoins relatively subdued. XRP and SOL saw declines of 2% and 0.8%, respectively, while meme tokens DOGE and SHIB dropped by 4.3% and 1.6%.
This week, all eyes are on the PCE price index data, the Fed’s preferred measure of inflation, which is expected to influence expectations regarding interest rates. Despite this, traders seem to be scaling back their expectations for a rate cut in September, according to the CME FedWatch tool.
