Crypto Market Slumps Despite Ether ETF Approval

The cryptocurrency market continued its decline on Thursday, even after SEC Chair Gary Gensler said he expects spot ether ETFs to receive full approval by the end of the summer. While the news initially sent ether prices higher by 1%, the gains were short-lived, with the price reversing more than 3% within an hour. The broader market has been under pressure since Wednesday, following the Fed's hawkish policy meeting results. The central bank maintained interest rates but suggested only one rate cut in 2024, contradicting market expectations of two to three cuts. Adding to the bearish sentiment were disappointing U.S. economic data, indicating a softening in both inflation and the economy. Despite the recent bullish news, including improving inflation data, a Bitcoin-friendly presidential candidate, and spot ETH ETF approvals, the market has struggled to sustain gains. Analysts are struggling to explain the market's inability to move higher, despite the positive factors.