Last April there was an important event like the Bitcoin Halving that happens every 4 years, causing $BTC to fall by over 18% and no other major event happened to Bitcoin in a short period of time. The cut is halved, which is basically good for the medium to long term.
Investment Advisor at Merkel Capital Company Limited Mr. Voramed Sanson revealed the overall picture of the crypto market. There are still more bullish trends, especially Bitcoin in the medium to long term. Meanwhile, in the short term, the Ethereum Ecosystem is another group to watch in May. For the following reasons:
1) First Expiry Date of Ethereum Spot ETF
In May, there was an important event to watch: the final deadline for all 3 Ethereum Spot ETFs, which could affect other items being considered for approval in the future. Analyzing the Bitcoin Spot ETF together with the approval period, it is found that the price of $BTC increased until the day the approval was announced, thus $ETH is likely to increase until May 23. However, it should be analyzed together. If the trend turns negative with permission, it will have a significant negative effect on the price of $ETH.
2) Circumstance and Prospect of Ethereum Spot ETF Approval
After analyzing the impact of the Ethereum Spot ETF event, an analysis of the prospects for its upcoming approval is next. The main difference between Bitcoin and Ethereum Spot ETF is Proof of Work and Proof of Stake. Investor confidence that the SEC would approve it was low in March and April. But that's still more than 2023 (according to ETHE's discount or premium to NAV chart), and BlackRock has filed Form 19b-4, the final step in reviewing Ethereum Spot ETFs, so Merkle Capital sees it as an opportunity for approval. There's more, especially in BlackRock's catalog.
3) Increased TVL of the Ethereum ecosystem
The Ethereum Spot ETF is likely to be recognized from factors that have resulted in a significant amount of money flowing into the Ethereum ecosystem. Total Value Lock (TVL) is increasing in the short term especially in the Layer 2 group. An additional factor is airdrop speculation with layer 2 blockchains that do not yet have their own tokens, so the Ethereum Ecosystem is a group worth watching and likely to grow in May.
Chief Business Development and Commercial Officer of Merkel Capital Company Limited Mr. Mana Kanyo added. Beginning this month, as seen in the May and Go Away story on the first day of selling, Bitcoin sold for substantial profits. The reasons behind this could be many factors, but the recent FED meeting regarding the FOMC made it clear that they will not cut interest rates. As you can see from the numbers there is only one chance of a cut this year and it won't happen before the US elections. This puts pressure on this type of property. However, this could be a buying opportunity for investors waiting for the right moment. Another interesting point is Hong Kong's approval of BTC and ETH spot ETFs. This is considered a good sign for the market.
This article is for informational purposes only. This is in no way investment advice. Investments are risky. You should do a careful analysis before deciding to invest.
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