The cryptocurrency market is currently stuck in a range, with Bitcoin still attempting to rise above the crucial $90k mark. Meanwhile, the majority of altcoins are trying to recover from recent losses. Experts are noticing an interesting shift, as altcoins begin to break trends and take the lead. For months, Bitcoin was the dominant force, but as it slowed down, altcoins started to drive the market’s correction.
However, Matt Bartolini, head of SPDR Americas Research at State Street Global Advisors, recently discussed risks facing the markets, especially in light of the current economic climate. Here are three key reasons why markets may be turning bearish:
Weakened Consumer Confidence: Consumer confidence dropped to its lowest point since 2021, hitting 92.9 in March. This suggests that Americans are feeling uneasy about the economy, and if spending slows down, it could hurt the market, especially in the consumer sector. Consumer discretionary stocks in the S&P 500 are down 9% this year, compared to a 2% decline in the overall market.
Bearish Positioning in Consumer Discretionary: There are signs of a bearish outlook in the consumer discretionary sector, with $800 million in outflows in March alone. Options data also shows a higher number of puts compared to calls, and short interest is rising. A lot of this bearish sentiment comes from poor performance in stocks like Tesla and broader economic factors.
Uncertainty in Economic Data: Worries over inflation and weak economic data, like GDP forecasts from the Atlanta Fed, are also affecting market sentiment. While some sectors, like healthcare and insurance, are doing better, overall economic challenges and tariff impacts are making investors more cautious. However, banks are benefiting from widening interest margins and have seen positive inflows.
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The U.S. Securities and Exchange Commission (SEC) has pushed back the time to decide on a proposed rule change to enable staking within Grayscale’s Ethereum spot ETF products.
The proposal, under which the ETFs would earn extra yield by staking their Ethereum positions, was originally submitted by NYSE Arca on Feb. 14, 2025, and made available for comment in the Federal Register on March 3, 2025.
SEC Designates Longer Period For Grayscale Ethereum ETF Proposal
According to a notice released on April 14, 2025, the SEC has designated a longer period to take action on NYSE Arca’s proposal to amend the rules governing the Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF.
The SEC’s decision comes after Grayscale filed 19b-4 for the Hedera ETF with the US SEC. The original 45-day review period would have concluded on April 17, 2025, but the SEC has now extended this deadline to June 1, 2025.
In its notice, the Commission stated it “finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.” The notice also mentioned that the SEC has received no public comments on the proposed rule change to date.
The SEC’s decision to extend the review period is a standard procedural move that gives the Commission additional time to evaluate the proposal thoroughly. Under Section 19(b)(2) of the Securities Exchange Act of 1934, the SEC has the authority to extend its review period from the standard 45 days to up to 90 days if it “finds such longer period to be appropriate and publishes its reasons for so finding.”
SEC’s Approval May Enable Grayscale To Join PoS
If approved, the proposal would be important to Ethereum ETFs because it would allow Grayscale products to become part of Ethereum’s proof-of-stake system. Staking means locking ETH so that the network is safe and runs smoothly, and in return, users get rewards. For ETF investors, this would mean making extra money aside from the appreciation in Ethereum’s price.
Grayscale’s Ethereum Trust ETF and Ethereum Mini Trust ETF already hold Ethereum but do not earn staking yield. The rule change under consideration would alter the way these funds work.
The Commission must decide either to approve the proposal to amend the rule, disapprove it, or institute a procedure to determine if the proposal should be disapproved by June 1, 2025. This deadline is consistent with the SEC’s conservative stance on the investment product of cryptocurrency.
If passed, the rule revision would potentially create a precedent for other Ethereum ETF issuers who may apply for similar relief for their funds. The determination could also give insight into the SEC’s evolving position on proof-of-stake involvement using regulated investment products. Grayscale had previously sought a Litecoin ETF from the SEC and an XRP ETF from the NYSE in January.
Welcome to the US Morning Crypto News Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee to see what analysts say about Bitcoin amid the showdown between BTC behemoth Strategy (formerly MicroStrategy) and Jack Mallers’ investment firm, 21 Capital. With their Bitcoin models coming into question, is there a specific definition of what winning means in Bitcoin?
Strategy Grows Bitcoin Stockpile, Buys $1.42 Billion in BTC
Strategy announced that it recently purchased another 15,355 BTC worth approximately $1.42 billion at an average price of $92,737 last week.
The firm currently holds 553,555 BTC, valued at approximately $52.7 billion. The average buying price is $68,459, and the unrealized profit is $14.8 billion.
“By continuing to grow its Bitcoin holdings, the company maintains its status as a major force in the cryptocurrency market, drawing interest from investors and industry analysts. Strategy is the largest Bitcoin Treasury Company, an independent, publicly traded business intelligence company, and a Nasdaq 100 stock,” Phoenix reported.
A recent US Crypto News publication highlighted the advent of 21 Capital. The Bitcoin investment firm sprouted after Cantor Fitzgerald, SoftBank, Tether, and Bitfinex pooled $3 billion in capital.
Based on sentiment, this new venture could inadvertently challenge Strategy’s position at the helm of corporate Bitcoin ownership in a model sense. According to 21 Capital, Strategy size could make increasing its Bitcoin per share difficult, a metric investors tend to consider.
Amid chatter that 21 Capital could threaten the Michael Saylor-led firm, BitStrategy, a shareholder at Strategy, challenged the prospective market rival’s business model.
Tension Grows in Bitcoin Treasury Space
In a detailed post on X (Twitter), BitStrategy acknowledged the brewing tension in the Bitcoin treasury arena. However, it holds that Strategy is way ahead of the competition.
“Their company is in direct competition with ours, and they seek to exploit a perceived vulnerability in our structure, openly highlighting their strengths relative to ours to win investment,” BitStrategy challenged in a recent post.
Beyond BTC Yield, also reported in a recent US Crypto News publication, the firm initiated key performance indicators months ago- BTC Gain and BTC $ Gain.
Bitcoin Gain multiplies the BTC Yield by Strategy’s aggregate balance, reflecting the scale of the firm’s operations.
Bitcoin $ Gain takes this further, converting the BTC Gain into dollar terms, for added transparency.
This proactivity by Strategy suggests a commitment to defend its position as a leading Bitcoin-holding corporation amidst rising rivals.
“You can fake an impressive BTC Yield. You cannot fake an impressive BTC Gain,” BitStrategy chimed.
However, analyst KenjiKoshu argues that while Strategy may show substantial Bitcoin gains, smaller companies like 21 Capital could achieve higher Bitcoin per share.
“As someone who has done deep thinking about why MSTR is undervalued, it might be true BTC gain can still be substantial if not higher for MSTR. On a per-share basis, however, which would be what supports the stock; it will be hard to deny a smaller, similarly reputable company is going to make more Bitcoin per share when on the same strategy,” the analyst wrote.
This outlook aligns with sentiment from 21 Capital that Strategy’s large size impedes increasing its Bitcoin per share.
However, BitStrategy articulated that the point of BTC Gain and BTC $ Gain signals the importance of a whole-of-company view of performance relative to a per-share view.
Per the shareholder, there is no agreed-upon conventional valuation methodology for Bitcoin companies. This means any metric is somewhat arbitrary.
Investors increasingly turn to digital assets as a safe haven, with Bitcoin becoming a hedge against the US dollar’s volatility as crypto inflows surge to $3.4 billion.
Ethereum price has rebounded above $1,800 on Wednesday, April 30, as fresh crypto adoption headlines from Trump Media fuel market-wide interest.
Ethereum bulls hold $1,800 support amid market rotation
Ethereum (ETH) is showing signs increased investor interest on Wednesday, as it floats near $1,803, up 0.4% in the last 24 hours. The mild uptick, comes after dipping to a weekly low of $1,784 on Tuesday.
According to Coingecko data, the second-largest cryptocurrency by market cap rose to a new monthly timeframe peak of $1,837.
Ethereum price action, April 30 | Coingecko
Zooming out, Ethereum’s seven-day price action reflects a 2.1% gain. ETH Market cap currently sits near $217 billion, holding Ethereum’s position as the second-largest crypto asset.
Meanwhile, trading volume has declined modestly but remains consistent with previous consolidation phases, suggesting a patient accumulation by market participants rather than outright sell-offs.
The ETH/BTC pair is also steady at 0.01905 BTC, up 0.4% over the last 24 hours. This stability relative to Bitcoin shows ETH is holding its own in the broader rotation out of BTC towards altcoins.
Trump Media token launch revives sentiment as ETH tests support range
A shareholder letter from Trump Media & Technology Group (TMTG) this week introduced plans for a new utility token and native Truth wallet, sparking speculative interest in political and media-linked blockchain assets. The news has had a subtle spillover effect on Ethereum, which often benefits from increased media attention around crypto infrastructure.
The token from TMTG is not launching on Ethereum, but the broader theme of media-token integration may renew investor focus on ETH’s role in hosting enterprise-grade apps, NFTs, and tokenized communities.
The broader altcoin market has moved cautiously amid ETF decision delays from the SEC, but Ethereum has managed to avoid deeper losses. With institutional attention now split between meme tokens and serious Layer-1s, ETH’s consistent liquidity continues to act as a stabilizer.
Looking at the 3-month window, Ethereum remains up over 12.9%, reflecting strength from its March rally above $2,100. Still, investor sentiment remains mixed as long as ETH stays below the psychologically important $2,000 level. Short-term volatility may continue, particularly as Bitcoin dominance edges higher and regulatory clarity remains elusive.
Looking ahead: What’s ahead for ETH traders?
While the Trump Media token launch has limited impact on Ethereum’s fundamentals, it emphasises a growing trend of mainstream entities, sovereign governments entering the cryptocurrencies sector.
If this adoption wave gains momentum, ETH price is well-positioned to benefit as the leading network decentralized finance applications.
As of now, traders are watching whether Ethereum can reclaim $1,850–$1,880 in the coming days, with $1,735 remaining the key support to hold.
Ethereum price forecast today: Elliot Wave pattern points to $1,857 target before possible retracement
The Ethereum price forecast chart below displays a clean 5-wave Elliott structure, and price has now reclaimed territory above the mid-range baseline of the Donchian Channel, suggesting bullish control.
Ethereum price forecast
The current uptrend from the April 13 swing low formed a base near $1,681, which aligns with the 0.5 Fibonacci retracement of Wave (1). This level now acts as strong support.
More so, the ETH Volume Delta has cooled significantly, printing –9.58K, signaling reduced bearish pressure rather than decisive profit-taking.
However, ETH candles continue to close above the 20-day moving average line within the Donchian Channel.
The upper band of $1,857 marks the likely target for this impulse wave’s completion. If broken, a rally towards $2,000 becomes plausible.
Still, the breakout prospect is not confirmed without a decisive break above $1,857. A pullback from here could trigger instant retracement toward the 0.382 Fibonacci at $1,735, aligning with Wave (4) corrective targets.
In summary, ETH bullish thesis remains intact if prices stay above $1,681, but a close below this level would challenge the Elliott bullish count, possibly breaking below the $1,500 terittory.
