Bitcoin and Altcoins Experience a Downturn
Bitcoin (BTC) and major altcoins are currently facing a significant decline in value. According to CoinGecko, BTC’s price has dropped by almost 4% in the past day, reaching $40,640. Over the course of the week, BTC has lost more than 6% of its value. Just last week, it was on the verge of reaching $49,000 per coin.
The Impact of Spot BTC ETFs
Despite the recent approval of spot BTC exchange traded funds (ETFs), BTC’s price has taken a dip. While some expected these investment vehicles to boost the cryptocurrency’s value as traditional investors gained exposure to it, data firm CryptoQuant predicted a drop in price. It seems that their prediction is coming true as investors cash out their gains from the hype surrounding the ETF approval.
Grayscale Bitcoin Fund and Other Altcoins Affected
Investors are also quickly withdrawing from Grayscale’s Bitcoin Fund following its conversion to an ETF. This rush to take profits after being locked into the fund is causing the fund manager to sell BTC. Additionally, other top 20 cryptocurrencies like Solana (SOL), Avalanche (AVAX), and Cardano (ADA) have experienced significant losses in value.
Hot Take: Uncertain Times for Bitcoin and Altcoins
Bitcoin and altcoins are currently facing uncertain times as their values continue to decline. Despite the historic approval of spot BTC ETFs, BTC’s price has taken a hit. Investors are cashing out their gains from the pre-approval hype, while Grayscale’s Bitcoin Fund conversion to an ETF has prompted further selling pressure. This downturn is not limited to BTC alone—other major altcoins like Solana, Avalanche, and Cardano are also experiencing losses. It remains to be seen how the market will recover from this slump.
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