Ethereum Could Witness Supply Shock and Sharp Upturn in Price When Fed Pivots: CoinShares Head of Research
A top executive from digital asset manager CoinShares believes market conditions could soon send Ethereum (ETH) soaring.
In a new interview with Scott Melker, CoinShares’ head of research James Butterfill says a likely upcoming Fed pivot could be bullish for both Bitcoin (BTC) and ETH.
Butterfill says Ethereum could see additional upside momentum around the time the Fed starts cutting rates from the potential launch of spot market ETH exchange-traded funds (ETFs) and a supply crunch due to investors already staking a large amount of the top altcoin.
“If you look at the futures market, interest rate expectations is saying first rate cut [is] not to be until December. I do think the first rate cut will be bigger than expected and later than expected, i.e. a knee-jerk reaction…
It would be actually very bullish for something like Bitcoin, which is massively sensitive to interest rate expectations…
Certainly on the Ethereum side, it’s interesting. The amount of circulating supply of Ethereum is quite low because a lot of people are staking. Now the new ETFs, they won’t be able to stake when they’re launched in July, most likely, so there could well be a bit of a squeeze going on, a supply squeeze, and that could lead to some quite sharp uprises in prices.”
Ethereum is trading for $3,761 at time of writing, down more than 2% in the last 24 hours.
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