Regulatory concerns and worries of an immediate ether supply boost after the Shanghai upgrade are keeping investors from aggressively bidding up $ETH. reports godbole17
"If all partial withdrawals are attempted just after the Shapella fork , it would take around four and a half days for these ETH profits to enter the market," Lucas Outumuro, head of research at IntoTheBlock, said in a note published Friday."It would take approximately 100 days for one-third of validators to exit if they all attempt to exit simultaneously, translating into $80-$100M worth of ETH being withdrawn per day.
The market, however, is not convinced, as evident from ether's underperformance relative to bitcoin and ether put options, or bearish bets,Regulatory concerns are probably also weighing on investors. In February, the U.S. Securities and Exchange Commission that Ethereum staking services offered by centralized exchanges amount to selling unregistered securities in the U.S.
"ETH faces relatively higher regulatory risks. The SEC has repeatedly stated that ETH is a security rather than a commodity, which differs from the CFTC's opinion and means additional risk, so investors understandably prefer BTC," Ardern said. The CFTC is the agency governing the futures market. Lastly, recent banking sector instability in the U.S. and the resulting sharp repricing of interest-rate expectations lower worldwide has benefited bitcoin. The cryptocurrency has evolved as a macro asset in the past three years and has a history of"BTC got the store-of-value narrative back after multiple U.S. banks failed in mid-March. Since then, BTC's dominance rate has been rising," Dubai-based crypto analyst and trader Reetika Malik said.
"By being concerned, the market is actually 'pricing in' already any selling pressure that we are likely to get from the Shanghai hard fork and the upgrade could actually become a 'buy the news' event," Malik said."BTC dominance chart is at a multiyear resistance as well as we speak. All the stars are aligning for a rotation into ETH."
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