The world’s largest cryptocurrency dropped 7.5% before recovering some of its losses. As of 9:50 am (Vietnam time), Bitcoin is down 4.5% in the past 24 hours to $41,800. Ethereum also fell 5% to $2,230.
Source: CoinMarketCap
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Other top 10 coins are also in the red, with Ripple (XRP) down 7%, Cardano down 6%, and Solana down 3%. Only Avalanche is bucking the trend with a 6% increase in the past 24 hours.
The market is experiencing a sell-off after a hot streak for Bitcoin and other cryptocurrencies. In the past week, Bitcoin reached a high of $45,000, a 165% increase from the beginning of the year. Other cryptocurrencies also saw strong gains.
Excitement about the possibility of a Bitcoin ETF in the US is the main driving force behind Bitcoin’s recent surge. Initially, this news did not have much impact, but as more applications are submitted and feedback is received from the US Securities and Exchange Commission (SEC), investors become more excited and confident in the approval of the ETF.
“The biggest driver of Bitcoin’s price rise could be the number of applications for physically-backed Bitcoin ETFs expected to be approved by the SEC,” said Yiannis Giokas, Senior Director at Moody’s Analytics, in an email. “The race is heating up, with large fund managers starting to take notice of Bitcoin.”
The crypto industry is awaiting the result of BlackRock’s application for a physically-backed Bitcoin ETF. Bloomberg Intelligence expects Bitcoin ETFs to be approved by the SEC in January 2024.
