Bitcoin (BTC) is taking a nosedive – and bringing major altcoins with it. According to CoinGecko, the largest digital coin by market cap is currently trading at $40,640 after plunging nearly 4% over the past day.
Over the past week, BTC has lost more than 6% of its value. Last week, the asset increasingly referred to as “digital gold” quickly approached $49,000 per coin for the first time since 2021.
BTC’s crash comes after the historic approval of spot BTC exchange-traded funds (ETFs). The popular investment vehicles began trading in the US after ten years of regulators saying no.
Some market observers expected this to cause the price of BTC to rise as traditional investors finally have access to the largest and oldest cryptocurrency. But others, like data firm CryptoQuant, predicted the asset's price would fall. And that has been the case so far – despite the great success of ETFs.
BTC's decline comes as investors cash out their profits from the hype that built up before the ETFs were approved.
Additionally, investors quickly cash in cash from Grayscale's Bitcoin fund after converting it into an ETF. Traders exit their positions to take profits after previously being locked into the fund, causing the fund manager to flog BTC.
Other top 20 cryptocurrencies were hit harder. Solana (SOL) has lost almost 7% of its value in the last 24 hours and is trading at around $89. The value of the main coin had skyrocketed since October, reaching a high of $122 in December.
Avalanche (AVAX) is another big loser, down more than 8% in a day. The value is now around $31.50.
Cardano (ADA), the ninth-largest digital asset by market capitalization, is also at $0.47, down almost 7%.
Edited by Andrew Hayward
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
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