Bitcoin (BTC) ended the first U.S. trading day of the week in positive territory, but it relinquished some gains as the U.S. 10-year yield surged to its highest level in over 16 years. Over the past 24 hours, the world’s largest digital currency slipped into the red, experiencing a 1.57% decline. Meanwhile, despite high expectations, the much-anticipated ether futures exchange-traded funds (ETFs) struggled to garner significant investor interest, with low trading volumes reported on their inaugural trading day.
Bitcoin is poised to conclude the U.S. trading day just below the $28,000 mark, posting a roughly 3% gain, according to CoinDesk Indices data. Meanwhile, ether is currently trading at around $1,670, experiencing a slight decline during the session. The CoinDesk Market Index (CMI) has gained 1.6% over the past 24 hours.
In the stock market, equities exhibited mixed performance on Monday after U.S. lawmakers averted a government shutdown over the weekend with a temporary funding bill. Interest rates continued their upward trajectory, with the U.S. 10-year Treasury yield surging by an additional 11 basis points to reach 4.69%. This surge in yields followed unexpectedly strong manufacturing data, which underscored the resilience of the U.S. economy. The ISM figures came in at 49, surpassing the forecasted 47.7, suggesting the possibility of more interest rate hikes.
All of these developments in the cryptocurrency industry are unfolding as October begins, a historically robust month for the market.
The crypto market, particularly bitcoin, has recently experienced a significant rally, driven by factors such as the SEC’s approval of ether futures ETFs and various government decisions. QCP Capital noted in a recent analysis that bitcoin has surged by 15% in the last two weeks. However, QCP expressed concerns about the sustainability of this rally, considering shifts in demand and historical data that hint at potential market downturns.
“We would even go further to say a futures-only ETF is arguably detrimental to spot price – as it potentially directs demand away from the spot market into a synthetic market,” they stated. QCP anticipates resistance levels to hold in the range of $29,000 to $30,000.
Regarding the recently launched ether futures ETFs, trading volumes remained subdued throughout the trading day.
“Even if these ETFs come out and do not cause significant price fluctuations, that’s perfectly fine. That’s the way assets are supposed to function. They should not be excessively volatile,” remarked Michael Safai, Managing Partner at Dexterity Capital, during a recent appearance on CoinDesk TV.
