Illustration by Mitchell Preffer for Decrypt.
Bitcoin (BTC) had a depressing week after that historical approval and trading several crypto exchange traded funds (ETFs).
The largest cryptocurrency by market capitalization fell hard on Monday after one Sellout from digital asset fund manager Grayscale. The virtual coin fell below $40,000 on Tuesday (to $38,678) but slowly recovered throughout the week.
It is now trading for $41,830, according to CoinGecko data showsa movement of less than 1% over seven days.
Before Grayscale's Bitcoin ETF began trading, it operated like a closed-end fund where investors could not exchange their shares for BTC. However, after conversion and subsequent trading, investors quickly began withdrawing funds.
This resulted in Grayscale sending large amounts of the cryptocurrency to its custodian Coinbase, which resulted in pressure on the BTC price.
Grayscale’s selloff slowed towards the end of the week – likely leading to a recovery in BTC price.
It's not all bad news, though: analysts told Decipher that Bitcoin “could become more attractive” in 2024 – if the Federal Reserve cuts interest rates.
But BTC's crash this week hit the broader crypto market. Ethereum (ETH) was a big loser, falling to $2,186 on Tuesday and never really recovering, posting an 8% loss for the week. It is currently trading for $2,264.
The decline followed the US Securities and Exchange Commission's decision Decision to delay ETH ETF proposals from BlackRock and Grayscale.
Elsewhere, Solana (SUN) got a beating. It was one of the worst-performing cryptocurrencies at the start of the week. The price has since risen and is trading at $92.60, up more than 1% in seven days.
While Dogecoin (DOGE)– the original meme coin and the eleventh largest cryptocurrency –pumped There was speculation earlier in the week that it could be used for payments on Twitter, and it has slowly drifted back to where it started. At the beginning of the week the price was at $0.08 and is back to the same level at the time of writing.
Edited by Ryan Ozawa.
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