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ETH Price Jumps, BTC Optimism, Nvidia Becomes Most Valuable Company

ETH Price Jumps, BTC Optimism, Nvidia Becomes Most Valuable Company

This week in web3 via NettyBytes

Alcides Aguasvivas
June 20, 2024

NettyWorth is a social marketplace where you can Chat, Manage and Borrow against your digital assets.

1. Ethereum Price Jumps to $3,550 Following SEC’s Closure of ETH Probe

Ether (ETH) price has surged by about 4.5% in the past 24 hours, reaching $3,550. This rise is primarily driven by the U.S. Securities and Exchange Commission's (SEC) decision to end its investigation into Ethereum, determining that ETH is not classified as a security. This announcement coincides with the SEC's approval of spot Ether ETFs from major firms like VanEck, BlackRock, and Fidelity, which are expected to go live on July 2, potentially attracting $4 billion in inflows within five months. Additionally, the amount of ETH held on crypto exchanges has dropped to an eight-year low, indicating reduced selling pressure and increased holding in private wallets or decentralized protocols. Despite the option to withdraw staked ETH following Ethereum's Shanghai upgrade, most users have kept their tokens staked, showing a preference for stability and rewards over selling. Technically, ETH has bounced from a support confluence around $3,500, with an upside target of $4,853 if the trend continues.

2. BTC Price Dips to $64.3K, But Miners and Whales Show Optimism

Despite Bitcoin's price dipping to $64,300, top traders remain bullish. The price drop coincides with U.S. economic slowdown and high interest rates, which typically hurt Bitcoin as investors favor fixed-income assets. U.S. spot Bitcoin ETFs saw outflows, and the S&P 500 hit an all-time high, diverting interest from Bitcoin. However, derivatives market data shows increasing long-to-short ratios on Binance and OKX, indicating strong demand for leveraged long positions. The decline in demand for Bitcoin put options suggests a bullish sentiment. Bitcoin miners have shown reduced sell pressure since June 14, as indicated by Glassnode’s Miner Outflows Multiple. Combined with potential Fed rate cuts by year-end, the outlook for Bitcoin remains optimistic despite the recent dip.

3. Nvidia Becomes World's Most Valuable Company with $3.34 Trillion Market Cap

Nvidia has surpassed Microsoft and Apple to become the world's most valuable publicly traded company, with a market capitalization of $3.34 trillion. Nvidia's stock recently underwent a 10-for-1 split, and shares are trading at around $135. Initially a gaming company founded in 1991, Nvidia now provides about 80% of AI chips used in high-end data centers, with major clients like OpenAI, Google, Amazon, and Microsoft. The company reported $26 billion in Q1 revenues, including $22.6 billion from data centers. Nvidia's CEO Jensen Huang announced plans to release new AI chipsets annually, marking a shift from their previous biennial release cycle. Nvidia's transition reflects a broader industrial revolution driven by artificial intelligence.