ETH futures launch could hurt price – JPMorgan
Ether futures could shatter cryptocurrency rally, JPMorgan says
Meanwhile, ETH renews all-time highs
Crypto community doubts a repeat of 2017 scenario for ether
International consortium of news organizations developing transparency standards.
ETH futures scheduled to open this week could play poorly on cryptocurrency price, JPMorgan said
JPMorgan analysts believe that the launch of ETH futures will stop the coin’s rally in the spot market. Bloomberg writes about this, referring to the report of banking analysts.
The rally in ether may face bearish pressure after the launch of ETH futures. Recall that the Chicago Mercantile Exchange plans to open trading in futures contracts for the second largest cryptocurrency on February 8.
Join our telegram channel to keep abreast of the main trends in the crypto market.
In particular, JPMorgan analysts draw parallels between an ETH derivative and bitcoin futures. The BTC rate plummeted after the launch, which took place in 2017. The Federal Reserve Bank of San Francisco even released a report according to which it was the launch of futures that made it easier for bears to enter the market..
So, according to the report, the rapid rise in bitcoin and the subsequent fall after the appearance of futures “does not seem random.” Futures contracts “allowed pessimists to enter the market”, which affected the dynamics of the cryptocurrency, the report says..
Futures don’t mean anything
However, JPMorgan analysts believe that starting volumes for ETH futures will be insignificant and are unlikely to be able to trigger an unfavorable scenario for cryptocurrency..
A similar opinion is shared by Vijay Aiyar, head of the Luno crypto exchange. According to him, the launch of futures is unlikely to affect the price dynamics of the cryptocurrency due to the fact that big money is just beginning to come to the ether market..
“Smart traders switched to ether when bitcoin surpassed $ 40,000,” Aiyar said..
Learn how to trade in the cryptocurrency market with BeInCrypto partner, StormGain cryptocurrency exchange
The further growth of the cryptocurrency was previously announced by the strategists of Fundstrat Global Advisors. In their opinion, the price of Ethereum will sooner or later reach the level of $ 10,500. The only thing that can now affect the growth of the cryptocurrency is the difficulties with the transition to ETH 2.0, writes Bloomberg. At the time of this writing, the price of ETH / USDT is $ 1,523.
Read about Ethereum 2021 in a special material from BeInCrypto.
What do you think? Share your thoughts with us in the comments and join the discussion in our Telegram channel.
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..
The head of the ECB called the timing of the launch of the digital euro CONTENTS The President of the ECB expects the emergence of the digital euro within four years Governor of the Bank of England…
Cryptocurrencies Can Replace Gold – Bank of Singapore CONTENTS Cryptocurrencies Can Replace Gold Subject to Several Conditions Decrease…
Ukraine could create a cryptocurrency 3 years ago – the head of the Kuna Exchange CONTENTS Ukraine is able to develop a digital hryvnia in two weeks, believes…
eToro May Freeze Cryptocurrency Purchases Due to High Volatility CONTENTS eToro Prepares for More Activity Over the Weekend Service May Temporarily…
Ethereum 2.0 may start as early as July 2020 CONTENTS The first phase of Ethereum 2.0 may be released as early as July Beacon Chain is already paying…