Antonio Juliano, the founder of dYdX, a decentralized exchange (DEX), has expressed skepticism about the current crypto bull run. He attributes the recent price surge to “light trading volumes,” suggesting that this might not sustain the uptrend despite overall confidence.
According to Juliano, a true bull cycle is not solely defined by price action but also by participation and community enthusiasm, which he believes is currently lacking. He attributes the lack of widespread adoption to the absence of “groundbreaking” products that have captured the attention of a broader audience. However, he suggests that releasing these products to the market could revive activity and drive crypto trading volume.
These comments come ahead of the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Among the applicants are Fidelity, Grayscale, and BlackRock. Insiders claim the agency could approve the first product in the coming days. A spot Bitcoin ETF could open the floodgates to institutional investors, allowing them to gain exposure to the Bitcoin and crypto market in a regulated manner. Currently, willing institutions regulated by the SEC can only get exposure through Grayscale’s products, including the GBTC.
Some commentators have speculated that the SEC’s approval of a spot Bitcoin ETF could lead to the approval of a spot Ethereum ETF in 2024. An Ethereum Futures ETF was approved in 2023 and is currently available for trading. However, this product, like Bitcoin Futures ETFs, tracks an Ethereum index price, not the Ethereum spot rate. Whether the SEC will greenlight a spot Ethereum ETF remains to be seen.
Trading volume is a critical metric for measuring participation and interest in a particular asset. The higher it is, the more liquid the asset is. Depending on the prevailing sentiment, this might support prices or lead to a sell-off. As the crypto community eagerly waits for the SEC to decide on the flagship product, altcoins, including DYDX, have been firm.
Looking at the DYDX price chart in the daily chart, prices are moving horizontally but relatively high from the October 2023 lows. The coin is up roughly 50% but remains under pressure in the short term. DYDX is down 40% from November 2023 peaks, trading below December 2023 lows in a bearish breakout formation.
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| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Antonio Juliano |
| Companies | Fidelity, Grayscale, U.S. Securities and Exchange Commission, dYdX, BlackRock |
| Currencies | Bitcoin, Ethereum |
| Securities | None |
