Ether surges toward $4000 as U.S. whale signals strong support
Ether surged sharply in the short term, breaking through $3930 and challenging the $4000 mark once more. Michael Saylor, the CEO of MicroStrategy and a well-known person in the US market, has changed his opinion of Ethereum.
He now thinks that the U.S. Securities and Exchange Commission (SEC) approving an Ether spot ETF will give Bitcoin another line of protection.
There has been no discernible price trend in Ether since the SEC approved the 19b-4 filing for spot ETF applications last week. Instead, bulls and bears have been engaged in intense competition, causing Ether to fluctuate between $3700 and $3900. On Monday, though, Ether experienced yet another brief upswing.
$ETHUSD Ethereum nearing 4000 and sure looks quite bullish on the weekly chart forming a cup and handle.
I imagine if Bitcoin goes to 100k the next 6 months then Ether could double to 8k or even 10k. Might have more upside than BTC now with its own ETF approved pic.twitter.com/Ept4IkFZte
— Jason (@3PeaksTradinq) May 27, 2024
Over the weekend, Saylor discussed his opinions with Bitcoin podcaster Peter McCormack on the “What Bitcoin Did” podcast.
He asked, “Will the SEC’s approval of an Ether spot ETF benefit or hurt Bitcoin? Yes, I believe it will benefit Bitcoin since it will make us stronger politically with the backing of the whole cryptocurrency space.”
Eight Ether spot ETFs were given approval by the SEC last week to list on their respective exchanges. As Saylor put it, “They are yet another line of defense for Bitcoin.”
He reaffirmed that institutional adoption of cryptocurrencies would quicken as a result of this approval because investors who had previously been wary of them would now acknowledge them as a real asset class.
Saylor also clarified that money will be distributed among different cryptocurrency assets, but since Bitcoin is the “leader” of the pack, it will still receive the lion’s share of investment.
I think mainstream investors will say, ‘Oh, now there’s a crypto asset class. Maybe we’ll allocate 5% or 10% to this asset class, but Bitcoin will account for 60% or 70% of that.
Michael Saylor
Saylor acknowledged that his initial belief that the Ether spot ETF had little chance of receiving SEC approval had led to a change in opinion.
Additionally, he stated that two weeks prior, it appeared as though Bitcoin would be the only genuine cryptocurrency asset to be widely accepted and the only one to be securitized and offered in a spot ETF by Wall Street institutions.
Spot Ethereum ETF approval 'may be better for Bitcoin' — Michael Saylor
The approval of spot Ether ETFs brings in “another line of defense for Bitcoin,” argues MicroStrategy founder Michael Saylor.
— HuqqaWorld24 (@HuqqaWorld24) May 26, 2024
Furthermore, Saylor also predicted in early May that Ether would be categorized as a security by the SEC, and that Binance Coin (BNB), Solana (SOL), and Ripple (XRP) would follow suit.
He had previously declared that Wall Street and mainstream institutional investors would never accept these tokens as cryptocurrency assets, nor would they ever be bundled into spot ETFs.
However, it seems that he has now reversed his initial position.
“Is Saylor planning to purchase Ether next? This is an important 180-degree turn,” said Ricky Bobbyy, a crypto analyst.
In the near future, the United States is scheduled to release this Friday’s most recent Personal Consumption Expenditures (PCE) index. The Federal Reserve said last week in its meeting minutes that interest rates will remain where they are for an extended period of time if inflation does not decline as anticipated. One of the main economic reference points will be the PCE for April.
Just In : The approval of the Spot Ether ETF adds "another line of defense for #Bitcoin," according to MicroStrategy founder Michael Saylor. pic.twitter.com/wBJgG08MIU
— AltCoiners.live (@alt_coiners) May 27, 2024
The Federal Reserve will also make available the weekly data on jobless claims as well as its Beige Book report on the economy.
In the United States, Monday is Memorial Day, and the stock market will be closed on that day.
On this solemn occasion honoring the sacrifices and valor of our nation’s heroes, U.S. stock markets will be taking a day off from trading activities. Memorial Day marks a significant pause in the bustling financial landscape, allowing individuals to reflect on the profound meaning behind this national holiday.
Conclusion
Michael Saylor’s revised outlook, acknowledging the potential of Ether and other cryptocurrencies to gain acceptance and be securitized, marks a significant departure from his previous predictions.
With key economic indicators like the Personal Consumption Expenditures index and Federal Reserve reports due soon, and the U.S. stock market pausing for Memorial Day, the financial landscape remains dynamic and uncertain. This period of reflection provides a moment to consider the evolving role of cryptocurrencies in the broader economic context.
