Possible Ether Surge in Q1 2025 Amid Positive ETF Inflows, Analysts Cautiously Optimistic
The post Possible Ether Surge in Q1 2025 Amid Positive ETF Inflows, Analysts Cautiously Optimistic appeared on BitcoinEthereumNews.com.
As the cryptocurrency market braces for significant developments, recent data indicates promising trends for Ether, particularly in the lead-up to 2025. Spot Ether exchange-traded funds (ETFs) have witnessed substantial inflows, raising expectations for further growth as macroeconomic conditions evolve. CK Zheng, Chief Investment Officer of ZX Squared Capital, stated, “We expect the inflows will dramatically increase in 2025 when the new Trump administration issues more crypto friendly rules and regulations.” Exploring Ether’s promising trajectory with strong ETF inflows and expert insights reveals a pivotal year ahead for the cryptocurrency market. Positive Inflows Signal Bright Future for Ether ETFs In 2024, spot Ether ETFs experienced remarkable growth, with net inflows recorded in 22 of the last 24 trading days, accumulating over $2.5 billion. This sustained interest underscores the increasing institutional adoption of Ethereum as a viable investment. As observed in previous years, the first quarters following the election of a new United States president and the Bitcoin halving cycle have historically been favorable for Ether, indicating the potential for a bullish trend in Q1 2025. Historical Performance and Market Sentiment Analyzing past performance, Ether has achieved significant returns during the first quarter after important political and economic shifts. For instance, in Q1 2017 and Q1 2021, Ether surged by 518% and 161%, respectively. Data from Coinglass shows that these returns outpaced Bitcoin, which recorded increases of only 11.9% and 103.2% during the same periods. The cumulative growth of Ether during these critical phases hints at a renewed investor sentiment that could be reignited in 2025, especially with the anticipated policy changes under a new administration. Potential Challenges Amid Optimism Despite the optimism surrounding Ether, some analysts caution that macroeconomic challenges may hinder growth. Markus Thielen, founder of 10x Research, projects a more conservative outlook for 2025, citing a “hawkish” economic climate…
Filed under: News - @ December 30, 2024 4:55 am