BTC’s Volatility Returns
Bitcoin and the entire cryptocurrency industry had a tumultuous week as the US SEC approved the first spot BTC ETFs in the country. However, this approval was accompanied by various challenges, including a hack and controversial statements from the SEC chairman. These events resulted in increased volatility, with BTC experiencing significant price movements. After reaching a 21-month high of over $49,000, BTC quickly dropped by $3,000. While Friday saw some stability during Asian and European trading hours, BTC slumped to under $41,600 as US trading hours ended. It has since recovered slightly to around $43,000.
Currently, BTC’s market cap is $843 billion, with a dominance of 50% on CMC.
Alts See Red
Most altcoins are currently in the red, although some have experienced less severe losses. Ethereum is down by 2.6% to $2,550, while Binance Coin, Ripple, Dogecoin, and Toncoin have declined by less than 5%. On the other hand, SOL, ADA, AVAX, MATIC, BCH, DOT, and ATOM have suffered losses exceeding 5%, with BCH dropping by 11%. The total crypto market cap has lost $80 billion in a day and is now below $1.7 trillion on CMC.
Hot Take: Crypto Market Experiences Volatility Following First US Spot Bitcoin ETF Approval
The approval of the first US spot Bitcoin ETFs has triggered significant volatility in the cryptocurrency market. Bitcoin itself has seen drastic price fluctuations after reaching a 21-month high but ultimately dropping below $41,600. Altcoins have also been affected by this volatility, with many experiencing losses exceeding 5%. While some assets have fared better than others, the overall market cap has suffered an $80 billion decrease in just one day. These events highlight the ongoing volatility and unpredictability of the crypto market, emphasizing the importance of cautious decision-making and risk management for crypto investors.
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