Crypto Market Starts the New Year with Volatility
As the crypto market entered 2024, it experienced some volatility despite gaining momentum in the final quarter of 2023. While major cryptocurrencies have remained close to their December highs, the first weeks of the year were marked by price corrections and sudden drops.
A significant event that has been the center of attention is the approval of the first spot Bitcoin exchange-traded funds (ETFs) in the United States. Initially, this approval caused a surge in Bitcoin’s price, briefly reaching $49,000. However, Bitcoin quickly corrected and currently stands at $42,882, representing a decline of 2.92% since the start of the year.
Crypto Market Cap Falls Due to BTC ETF Approval
Other cryptocurrencies such as XRP, Solana (SOL), and Polygon (MATIC) followed a similar pattern. They experienced a brief surge on January 10, the day of ETF approval, before retracing their gains. As a result, the total market cap of all cryptocurrencies dropped by over $100 billion within a week from its yearly high to $1.75 trillion on January 16.
Bitcoin alone accounted for more than $60 billion of this decline. Its market cap decreased by $110 billion from its peak on January 11.
Ethereum Remains Strong Amidst Market Volatility
Ethereum has shown resilience amidst the market volatility. While it followed a similar rally and subsequent decline, it has risen above most other major cryptocurrencies in 2024. It has surged by 7.42% since January 1 and currently stands at $2,540.58.
Although Ethereum’s market cap is lower than its 2024 high, it remains significantly higher than its value on New Year’s Day. The Ethereum community is optimistic, thanks to its leading position among smart contract platforms and upcoming technical upgrades.
Technical analysis supports this positive outlook on Ethereum, with indicators ranking it as a “strong buy” overall.
Hot Take: Volatility Continues to Define the Crypto Market
The crypto market has started the new year with significant volatility, despite gaining momentum in the previous quarter. Price corrections and sudden drops have been observed across major cryptocurrencies, including Bitcoin and Ethereum.
The approval of spot Bitcoin ETFs in the United States caused a surge in Bitcoin’s price initially, but it quickly corrected and declined since then. Other cryptocurrencies also experienced retracements after a brief surge following the ETF approval.
Ethereum stands out among major cryptocurrencies, remaining in the green for the year and showing resilience amidst market fluctuations. The community is optimistic about its future due to its leading position and upcoming technical upgrades.
Overall, the crypto market continues to be defined by volatility as it enters the new year.
By
By
By
