Bitcoin Price Drops Below $41K After SEC Approves ETFs
The price of Bitcoin has continued to decline following the approval of several BTC ETFs by the US SEC. It has now dropped to its lowest position since mid-December 2023, falling below $41,000. This downward trend has also affected the altcoin market, with the total crypto market cap decreasing by approximately $50 billion overnight.
High Volatility and Sharp Retracement
Last week saw significant volatility in the market after the SEC approved 11 spot BTC ETFs. Initially, Bitcoin surged to its highest price in almost two years, reaching $49,000 on the day the ETFs launched. However, this was followed by a sharp retracement, causing a drop of $7,000 from its local peak. The bearish sentiment continued, pushing Bitcoin even lower.
Bitcoin’s Lowest Price in a Month
After a brief recovery over the weekend, Bitcoin struggled to surpass $43,000 for several days. However, in the past 24 hours, bears took control again and initiated another freefall. As a result, Bitcoin’s price dipped below $40,800, marking its lowest position in a month. Although it has slightly rebounded and is now above $41,000, it remains down 3.5% for the day. The market capitalization of Bitcoin has also decreased to $810 billion.
Altcoins Experience Declines
The altcoin market is also facing negative price movements, with most charts showing red. Ethereum has slipped by 2.5% and is trading below $2,500 after maintaining above that level for several weeks. Other cryptocurrencies such as Ripple, Cardano, Dogecoin, Polkadot, Tron, Chainlink, Toncoin, and Polygon have also declined by 1% to 5%. Additionally, Solana, Avalanche, ICP, and Uniswap have experienced drops of 6% to 9%. Some altcoins, including HNT, SI, ENS, LUNC, and AKT, have seen double-digit declines in the past 24 hours.
Overall Market Cap Decreases
The cumulative market cap of all cryptocurrencies has suffered a $50 billion loss in just one day and now stands at $1.630 trillion according to CMC.
Hot Take: Crypto Market Faces Significant Decline Following SEC ETF Approval
The recent approval of BTC ETFs by the US SEC has led to a downward trend in the crypto market. Bitcoin’s price has dropped below $41,000, its lowest point in a month. The altcoin market has also experienced declines across various cryptocurrencies. This significant decline has resulted in a $50 billion decrease in the total crypto market cap. Investors will be closely monitoring the market to see if it can recover from this recent downturn.
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