Over the weekend, while Bitcoin (BTC) remained stable around $52,000, Ethereum (ETH) saw a notable gain of over 5% as investors anticipated the launch of a spot Ethereum exchange-traded fund (ETF) in the coming months. The relatively low trading volumes over the weekend reflected the trend of decreased volatility following the launch of spot Bitcoin ETFs in the US in January, which altered market dynamics for BTC trading.
Developments in the Artificial Intelligence Sector Boost Major Altcoins
While Bitcoin maintained its stability, other major altcoins like Ethereum’s ETH and Polygon’s MATIC achieved significant gains, both rising over 5% since last Friday. The increase in ETH’s price is associated with heightened expectations for a spot Ethereum ETF in the US, which would facilitate access for American investors and contribute to the recent bullish sentiment surrounding the Ethereum ecosystem.
Furthermore, the launch of OpenAI’s text-to-video creator Sora ignited renewed optimism in the artificial intelligence (AI) sector, leading to increases of up to 10% in AI-related altcoins such as Worldcoin‘s WLD, Fetch AI‘s FET, Bittensor‘s TAO, and Sleepless AI‘s AI. This development demonstrates the market’s excitement about advancements in AI technology and its potential impact across various sectors.
Target Levels Shared for Bitcoin and Ethereum
Looking ahead, some market observers are targeting $55,000 in the short term and $70,000 in the long term for BTC. Ed Hindi, Chief Investment Officer at Tyr Capital, highlighted Bitcoin’s potential to reach $55,000 in the coming weeks, with expectations of hitting all-time highs and reaching $70,000 by early 2024.
On the other hand, Hindi emphasized that Ethereum is likely to attract more attention in the near future due to its potential rise and investment opportunities. He pointed to the anticipation surrounding the launch of a spot Ethereum ETF in the US and the growing global interest in decentralized finance (DeFi) as factors that could trigger the altcoin king’s potential growth.
Hindi suggested that these developments, along with the overall momentum in the cryptocurrency market, could be driving ETH towards a target of $5,000 within the year.
