How will the price of Ethereum change after the spot ETF is passed? Let's review the changes in the price of Bitcoin before and after its spot ETF is passed:
The approval date for the Bitcoin spot ETF is January 10, 2024. This approval triggered a significant reaction in the market. The following is an analysis of the changes in Bitcoin prices over a period of time before and after the approval:
Price action before approval: In late 2023 and early 2024, Bitcoin prices gradually rise, driven in part by market expectations of spot ETF approval. By early January 2024, Bitcoin prices were already close to $46,000, according to data from CoinMarketCap.
Reaction on the day of approval: On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) officially approved 11 Bitcoin spot ETFs. Although the market was highly anticipating this news, the price of Bitcoin actually fell slightly on the day of approval, falling to about $45,620. This short-lived pullback was mainly due to the market behavior of "buy expectations, sell facts", that is, investors chose to take profits after the announcement of major positive news.
Price Action Post-Approval: Following the approval on January 10, Bitcoin prices continued to rise and climbed further in the following months. On March 13, 2024, Bitcoin prices reached an all-time high of $73,084 (Statista) (InvestorPlace). This new high not only reflects the market confidence brought by the ETF approval, but is also driven by continued institutional investor participation and increased market demand for Bitcoin.
In summary, Bitcoin gradually rose due to market expectations before the approval of the spot ETF, experienced a brief pullback on the day of approval, and continued to rise in the months after the approval, eventually reaching a new all-time high of $73,084 on March 13, 2024. This process reflects the market's high expectations for the approval of the Bitcoin spot ETF and the market potential that was subsequently realized.
If Ethereum’s price completely repeats the price trend after the Bitcoin ETF is passed (which it certainly won’t), its price trend will be as follows:
Pre-ratification: Expectations suggest that Ethereum prices could gradually increase to around $4,000 before May 23.
Ratification day: A brief correction of 1-3% could see prices fall to around $3,880.
Post-approval: Ethereum prices could continue to rise in the coming months to reach new highs. Referring to the rise of Bitcoin, Ethereum prices could rise by 20-30% in the coming months to $4,500-5,000.
in conclusion:
Based on the price change pattern before and after the approval of the Bitcoin spot ETF, it can be inferred that the price trend of Ethereum before and after the approval of the spot ETF is as follows:
Pre-approval: Gradually increasing to approximately $4,000.
Day of approval: Brief pullback to around $3,880.
Post-approval: A rise to $4,500-5,000 is possible in the coming months.
These estimates are based on historical data and market behavior patterns, and actual price changes may be affected by other market factors.
