The cryptocurrency market experienced a downturn on January 12, leading to losses for many investors amidst ongoing optimism for spot Bitcoin ETF approvals. Bitcoin is currently trading at $43,438, representing a 6.45% decrease over the last 24 hours. However, during this period, Ethereum has managed to step ahead among the leading projects in the crypto market.
The King of Altcoins Makes Its Mark on Recent Days
Ethereum, with only a 0.85% loss in the last 24 hours, continues to trade at $2596, and according to analysts’ analyses based on on-chain data, a short-term price correction could occur in the altcoin king.
After the US Securities and Exchange Commission approved all spot Bitcoin ETF applications on January 11, attention shifted to Ethereum following a claim. Many analysts have suggested that spot Ethereum ETF applications could be on the agenda in the future, which has contributed to Ethereum’s momentum compared to other crypto assets.
With these developments, according to the data analysis platform The Block’s Data Dashboard, 89.4% of the circulating Ethereum supply is currently in profit, which is the highest rate seen since 2021. The high supply in profit could encourage investors to take profits, potentially leading to short-term selling pressure on the king of altcoins.
Prominent Figure Makes Noteworthy Statements
ETC Group Research Head André Dragosch, in a statement, made significant remarks about the rise in Ethereum’s price. According to the prominent figure, the recent approval of spot Bitcoin ETF applications by the SEC has encouraged speculation that spot Ethereum ETF products could also be introduced in the future, which would signify an uptrend for the second-largest crypto asset by market value.
Dragosch also mentioned that the recent significant increase in the Ethereum supply in profit could act as a balancing factor for Ethereum:
“The reason is that there tends to be less incentive to sell the asset under these conditions, especially for long-term holders. However, short-term investors may still be inclined to take profits, but it is definitely supportive for an ongoing bull market.”
