Ethereum Price Touches USD 3,000, Highest in 2 Years

As previously reported, last week, the US Securities and Exchange Commission (SEC) approved the existence of Bitcoin spot exchange-traded fund (ETF) products in the United States (US).

Prior to the announcement of the decision, the crypto asset market fluctuated, pushing the price of Bitcoin to its highest price in two years at USD 48,983 or the equivalent of IDR 765.3 million (assuming an exchange rate of IDR 15,625 per US dollar).

Commenting on this, Financial Expert Ajaib Crypto, Panji Yudha said, with the approval of the spot Bitcoin ETF, it was seen that there was a 'sell the news' which caused Bitcoin's increase to not last long.

“Investors have anticipated this increase in profit, where the buy the rumor regarding the Spot Bitcoin ETF has started since Blackrock submitted the Spot Bitcoin ETF application in June 2023,” said Panji in a press release, quoted Thursday (18/1/2024).

Even though Bitcoin (BTC) experienced a decline, Ethereum (ETH) actually experienced an increase in the last seven day period. Post the approval of a spot Bitcoin ETF, market expectations of an Ethereum ETF also getting approved in the next few months by the SEC have driven investor interest in Ethereum.

A number of large companies, such as Vaneck, Blackrock, and Fidelity, have submitted applications for spot Ethereum ETFs, with a decision deadline of May 2024 for the VanEck ETF, followed by BlackRock in August 2024. However, it is possible that the decision could come earlier.

“If you look at the current situation, Ethereum is still in the buy the rumor phase, which is similar to the spot Bitcoin ETF cycle, and a price decline could potentially occur after official approval is given later,” explained Panji.

Panji said, Ethereum historically outperformed Bitcoin in January, with an average Ethereum increase of 26.7%, while Bitcoin only achieved a 4.8% gain from 2017-2023.