Ethereum Price Exceeded $3.1K After Regulatory Victory
The post Ethereum Price Exceeded $3.1K After Regulatory Victory appeared on BitcoinEthereumNews.com.
On May 17, 2024, the price of Ether (ETH) surged by 5.5%, nearing the $3,100 zone for the first time in 10 days. Analysts attributed the rally to a drop in demand for fixed-income instruments after stagnant US retail sales data in April. The data increased the market’s expectation of a possible interest rate cut by the US Federal Reserve to boost the economy. Expansionary measures by the central bank are normally seen as bullish for risk-on markets, whether because of an increased monetary supply or reduced credit costs for individuals and businesses. Investors went after exposure to scarce assets, including cryptos, resulting in gold hitting $2,410, around 0.8% below its all-time high. A Court Ruling Enhanced Ether Investors’ Confidence Ether’s surge was also powered by a US Department of Justice indictment that was unveiled on May 15. This indictment accused two people of wire fraud and money laundering by manipulating the Ethereum blockchain. The document said: “Ethereum is a decentralized blockchain […] without the need for a trusted intermediary. No central actor runs the Ethereum Network.” Furthermore, the court noted that Ethereum smart contracts support transactions without any trusted intermediary. The statements enhanced Ether investors’ confidence, mostly after the US Securities and Exchange Commission issued a Wells notice targeting the Robinhood trading platform on May 4 over alleged securities violations linked to crypto listings and custodian operations. Based on a statement by the founder and CEO of Lexproof, Orlando Cosme, such a verdict contradicts regulators’ classification of Ether as a security, “as there would be no management or entrepreneurial efforts of others.” While this analysis does not alter the approval odds of US spot Ether exchange-traded funds (ETFs), it lifted investors’ spirits. The US SEC is expected to give its final ruling on VanEck’s spot Ether ETF request on…
Filed under: News - @ May 18, 2024 3:26 pm