Cryptocurrency Market Update: Bitcoin Slips, Ether Inches Up as Investor Confidence Remains Positive

In the latest developments within the cryptocurrency market, Bitcoin experienced a slight decline while Ether saw modest gains during Monday afternoon trading in Hong Kong. Notably, the majority of the top 10 non-stablecoin cryptocurrencies showcased signs of strengthening. This positive momentum can be attributed to the wave of institutional interest in cryptocurrency, particularly the surge in Bitcoin spot exchange-traded fund (ETF) applications witnessed throughout June.

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Bitcoin slipped by 0.31% between 6:30 a.m. and 4:30 p.m. in Hong Kong, reaching a value of US$30,632. On the other hand, Ether witnessed a 0.4% increase during the same period, trading at US$1,963. Ether has consistently maintained a value above US$1,900 since Sunday, further solidifying its position.

Investors continue to exhibit optimism following the influx of spot Bitcoin ETF applications during June. Asset management giant Fidelity recently joined the race by submitting its own spot Bitcoin ETF application last week. However, the U.S. Securities and Exchange Commission (SEC), responsible for approving ETFs, expressed its dissatisfaction with applications from financial heavyweights such as BlackRock and Fidelity Investments, according to a Wall Street Journal report.

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The approval of a Bitcoin ETF remains a fiercely contested race among institutional firms. The ultimate outcome and the first approved ETF remain known only to Mr. Gensler, the SEC chairman. Nevertheless, market analysts, such as Jonas Betz, founder of consultancy firm Betz Crypto, believe that the approval of an ETF will have a positive impact on Bitcoin's price both in the short and long term. Betz explained, "An ETF will significantly lower the barriers to exposure to Bitcoin by providing an easily accessible investment vehicle and thus boosting demand for Bitcoin."

Among the top 10 cryptocurrencies, Polkadot's Dot token emerged as the highest gainer, rising by an impressive 4.48% to reach US$5.50. Ether closely followed with a 2.43% increase in the past 24 hours. The only cryptocurrency to experience a minor decline was XRP, which decreased by 0.02% to US$0.4824.

According to CoinMarketCap data, the total market capitalization of the cryptocurrency market increased by 1.18% within the past 24 hours, reaching a total value of US$1.21 trillion. Market volume also saw a significant rise, increasing by 20.72% to US$31.55 billion.

On the other hand, non-fungible token (NFT) sales witnessed mixed performance. In the last 24 hours, Bitcoin's NFT sales fell by 15.56% to US$2.57 million, while Ethereum's NFT sales experienced a growth of 7.54%, reaching US$24.96 million. Among the top Ethereum-native NFT collections, the Bored Ape Yacht Club recorded a 1.76% rise in sales, amounting to US$5.35 million. However, sales for the Azuki collection declined by 19.19% to US$1.89 million following criticism for its resemblance to the original collection.

In the wider market, Asian equities showed strength as of 4:30 p.m. in Hong Kong, driven by signs of easing U.S.-China tensions. Japan's Nikkei 225 rose by 1.7%, the Shenzhen Component Index saw a modest increase of 0.59%, Hong Kong's Hang Seng Index experienced a substantial rise of 2.06%, and the Shanghai Composite strengthened by 1.31%. These positive trends were bolstered by comments from Bank of America CEO Brian Moynihan, who suggested that U.S. inflation could potentially reach the Federal Reserve's 2% target by 2025.

In the U.S. stock market, most futures contracts displayed positive movement during Monday afternoon trading in Hong Kong. The S&P 500 futures index edged up by 0.061%, Nasdaq-100 futures strengthened by 0.29%, while the Dow Jones Industrial Average futures saw a slight decline of 0.11%. Investors eagerly await the release of manufacturing purchasing manager's index data for June, which is scheduled for Monday.

With the expectation of further interest rate hikes this year, as warned by Fed Chair Jerome Powell, U.S. interest rates currently stand between 5% and 5.25%, the highest in over a decade. The CME FedWatch Tool predicts an 87.4% chance of a 25-basis-point rate hike at the next Fed meeting on July 26, indicating a high probability of changes to monetary policy.

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