According to CoinDesk: Amid skyrocketing U.S. 10-year yield highs unseen in over 16 years, Bitcoin (BTC) slipped below the $28,000 mark while Ether fumbled below $1670. Though BTC started the week on a positive note, a spike in yields caused a loss in momentum, and Bitcoin succumbed to a 1.57% drop within the previous 24 hours.
Meanwhile, Ether futures exchange-traded funds (ETFs), initially hyped, remained underwhelming, garnering minimal investor interest on their premiere trading day. As the U.S. trading day concluded, Bitcoin flirted with $28,000, holding a 3% gain, while Ether traded at a humble $1670. According to the CoinDesk Market Index (CMI), there was a 1.6% surge over the past day.
Notably, equities showcased a mixed performance on Monday following a successful U.S. government shutdown evasion over the weekend - courtesy of a stop-gap bill. Interest rates persistently climbed, with the U.S. 10-year Treasury yield surging by 11 basis points, reaching 4.69%. This uptrend was a response to unexpectedly robust manufacturing data, emphasizing the U.S. economy's resilience, and heralding possible rate hike prospects.
In a recent note, QCP Capital cited the SEC's Ether futures ETF approvals and other governmental decisions as influencing factors behind the recent robust rally in Bitcoin, which grew 15% in just two weeks. Nonetheless, QCP raised doubts over the rally's longevity, citing potential undercut from shifts in demand and historic data reflecting potential market downturns.
QCP further warned that a futures-only ETF could potentially detract demand from the spot market, steering it towards a synthetic market. Consequently, they are capitalizing on this rally to purchase downside hedges, anticipating resistance to hover in the $29,000-$30,000 zone.
Regarding Ether futures ETFs, their launch was met with lukewarm response and low trading volumes on day one. Michael Safai, from Dexterity Capital, expressed on CoinDesk TV that irrespective of ETFs' impact on price changes, assets are meant to be stable and not wildly fluctuating. He added that ETF issuers might not have comprehensive market knowledge like traders, hence, their optimism might be uncalled for.