Once again, the cryptocurrency market has showcased its remarkable responsiveness to regulatory developments in the United States within the past 24 hours, particularly following the SEC’s approval of Ethereum ETFs. This news initially triggered a surge in prices, which was then followed by a significant decline in major digital currencies such as Ethereum and Bitcoin.
At the beginning of the week, Bitcoin (BTC) maintained a relatively stable position around $67,000. However, this tranquility was short-lived. Speculation about the imminent approval of an Ethereum spot ETF by the SEC caused the price of BTC to skyrocket to nearly $72,000, reaching a peak that hadn’t been seen in almost two months. Despite this initial surge, Bitcoin experienced a reversal of fortune and dropped below $68,000 right before the government’s decision, which was made just before the deadline.
The regulator’s final decision to approve eight Ethereum ETFs brought further fluctuations to the market. Bitcoin, for instance, briefly reached $66,400 before quickly climbing by two thousand dollars, but its growth was not sustained and it fell once again, struggling to stay above $67,000. Its market value decreased to $1.31 trillion, while its dominance over altcoins stood at 50.2%.
Altcoins were not spared from the market turmoil either. Ethereum (ETH), after initially surging by over 20% to reach $3,900, faced significant volatility before and after the SEC’s approval of ETFs. By the end of the period, ETH recorded a 4% drop, trading at $3,655.
Other large-cap altcoins also experienced declines. Solana, Dogecoin, Toncoin, Cardano, Avalanche, Polkadot, and Shiba Inu saw their values decrease by 5 to 8%. BNB, XRP, TRX, and BCH also performed negatively.
Disclaimer: The views and opinions expressed by the author or any individuals mentioned in this article are solely for informational purposes and do not constitute financial, investment, or any other form of advice. Investing or trading cryptocurrencies carries the risk of financial loss.
Editor’s Choice: Bitcoin Could Reach $70,000 Driven by Positive Sentiment and ETF Inflows. Bitcoin Reaches $68,000, with Highlights Also Including SOL, BEAM, and INJ.