JPMorgan is concerned that the imminent launch of Ether futures could hit the altcoin's value.
ETH has broken $1,500 for the first time ever — setting a new record high of $1,567.
The world’s second-largest cryptocurrency is up 18% over the past week, with the euphoria spreading throughout the altcoin market.
It came as Bitcoin managed to break through stubborn resistance at $35,000 — hitting highs of $36,767 before retracing slightly.
There’s renewed optimism that the crypto markets might be about to restart last month’s bull run. Only recently, BTC was at risk of falling below $30,000, with some analysts predicting that the world’s biggest cryptocurrency could tumble back down to $20,000.
ETH had subtly broken records above $1,432 several times in January, but only a few dollars at a time — and subsequently fell down to the $1,200 range quickly afterwards. As a result, this latest breakout is quite significant.
However, JPMorgan is concerned that the imminent launch of Ether futures could cause “negative price dynamics” — with research from the Federal Bank of San Francisco pointing to how BTC’s dramatic fall from highs of $20,089 in December 2017 coincided with the launch of futures trading on the Chicago Mercantile Exchange.
Not everyone is convinced. Vijay Ayyar, who heads up the Asia Pacific region for the Luno exchange, told Bloomberg:
“For all you know, major players may be looking to get long exposure through futures, now that there is an institutional-grade product to do so. Smart traders moved to Ether when Bitcoin topped out around $40,000 and have made more money.”
Pending a green light from regulators, ETH futures are set to make their debut next Monday — enabling institutional investors to speculate on the altcoin’s price without owning the underlying asset.
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