Since the highly anticipated Wall Street release of spot Bitcoin ETFs, the price of bitcoin has dropped significantly over the last seven days.
The cryptocurrency markets are struggling just over a week after spot Bitcoin exchange-traded funds (ETF) were introduced.
It was getting close to $49,000 last week.
The much anticipated Bitcoin exchange-traded funds (ETFs) have proven to be a huge success; BlackRock’s iShares ETF has amassed over $1 billion in assets under management.
Why then has the price dropped? It most likely has to do with investors taking their profits from the early excitement surrounding ETFs.
According to some analysts, the adoption of ETFs was already “priced in.” This suggests that after the permission was formally announced, dealers and investors were probably not going to keep buying.
Over the past week, the remainder of the cryptocurrency market has also suffered greatly. At $92.38, Solana (SOL) has lost more than 7% of its value in the last week.
Meanwhile Avalanche (AVAX), which is currently trading at $32.82, is down more than 14%. Due to the interest shown by institutional investors, both assets performed exceptionally strongly in December.
The second-largest digital coin, Ethereum (ETH), has seen an 8% decrease in value during the last week. The current price is $2,466.
The cryptocurrency community is now waiting on the release of spot ETH ETFs after the U.S. Securities and Exchange Commission approved 10 spot BTC ETFs.
The asset’s price fell on Thursday as Wall Street’s top regulator extended the deadline for a decision on Fidelity’s planned spot Ethereum ETF to March 5.
The total value of the cryptocurrency market has decreased by 2.8% during the past day to $1.7 trillion.
One thought on “This Week in Crypto: Despite ETF Hype, Bitcoin and Ethereum Plunge Hard”