- Ethereum price and volatility have surged recently, driven by strong ETF inflows and growing investor optimism.
- Meanwhile, Bitcoin edges closer to its all-time high as the crypto market shows broad gains amid cautious optimism.
The crypto market opened this week on a robust note, with Ethereum stealing the spotlight while Bitcoin inches closer to its all-time high. Alongside these giants, coins like Solana, XRP, Dogecoin, and Binance Coin also enjoyed gains, recouping their weekend losses and setting an optimistic tone for investors.
Ethereum’s Volatility Surges Amid Growing Optimism
Ethereum (ETH) has experienced much stronger price movement than Bitcoin (BTC) recently. This is evident in the implied volatility—the market’s expectation of future price swings. According to Augustine Fan, Head of Insights at SignalPlus, “Markets are now anticipating long-term volatility around 70 percent for ETH,” highlighting a sharp rise compared to Bitcoin’s relatively subdued short-term volatility.
Just a month ago, the probability of Ethereum hitting $4,500 in August was estimated at only five percent. However, the recent price surge has significantly increased that chance, attracting more attention from traders and investors alike.
Rising Inflows into Ethereum ETFs Boost Positive Sentiment
A major factor driving Ethereum’s strength is the substantial inflows into Ethereum exchange-traded funds (ETFs). These funds have been outperforming Bitcoin ETFs, signaling a potential shift in market preference. Institutional interest is also growing, with more companies purchasing large quantities of ETH, reinforcing bullish sentiment.
Investors are now anticipating Ethereum to retest its all-time high soon. This optimism is underpinned by expectations of favorable regulatory developments and growing adoption.
Bitcoin Gains Momentum but Remains Cautious
While Bitcoin initially reacted cautiously to recent market movements, it is now gaining momentum. Jeff Mei, COO at BTSE, notes that the strong rally over the weekend sets the stage for continued growth in both BTC and ETH, barring unexpected economic disruptions.
Market watchers are keeping a close eye on key events this week, including the appointment of the new Federal Reserve chairman and upcoming US inflation data, which could influence crypto price trends.
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