Bitcoin
Other cryptocurrencies fluctuated on Friday as choppy trading continued in the wake of the Securities and Exchange Commission's approval of the first spot bitcoin exchange-traded funds.
Bitcoin's price fell 1% over the past 24 hours to $45,950, after gaining in the period amounting to nearly $48,600 – nearly its best levels since early 2022. Wednesday's decision to approve a series of Bitcoin ETFs, the first of their kind in the United States to hold Bitcoin tokens themselves.
“Volatility has increased significantly over the past three days, but the price has been repeatedly returned to the $46,000 area. On the other hand, we have not seen the long-awaited 'sell-the-facts' reaction yet,” said Alex Kubtsikevich, analyst at FxPro. For mediation. “A correction could take the price below $40,000, but markets need a tailspin from a deteriorating macroeconomic outlook. Without it, [Bitcoin] We may drift towards $50,000 or see another long sideways consolidation.”
Cryptocurrency bulls believe that, in the longer term, bitcoin ETFs will lead to a new wave of investor interest in the digital asset, especially from deep-pocketed institutional investors who may have remained on the sidelines amid a lack of regulatory clarity. But immediately, the outlook became more uncertain, with many market participants preparing for traders to “buy the rumor and sell the news” following the SEC’s approval. Although some profit-taking may occur, it has not developed on a large scale and could be offset by flows into ETF products or other traders buying into the broader crypto hype.
BTC/USD trading volumes rose about 30% across cryptocurrency exchanges on Thursday, according to data from CoinMarketCap, while traders piled into 11 exchange-traded funds that debuted on Thursday. the
gray bitcoin box,
which was converted into an ETF, was the most active, with a total traded value of $2.3 billion — an all-time record for the fund that made it the ninth most active U.S. ETF on Thursday, according to data provided by Grayscale.
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Dynamics across cryptocurrency markets are expected to go through a period of adjustment as capital flows into and around the market, with liquidity expected to shift between new ETFs and cryptocurrency exchanges such as Coinbase Global.
.
“It appears that some investors have moved from cryptocurrency exchanges to owning their first cryptocurrency through an exchange-traded product,” Kubtsikevich said. “The launch of spot exchange-traded products is a positive long-term step that supports the reputation and liquidity of the cryptocurrency market, but by no means avoids a bumpy start to the journey.”
Beyond Bitcoin,
ether
– the second-largest cryptocurrency – fell less than 1% to $2,620. Microcoins, or altcoins, have also declined
Cardano
Down 2% and
ribbed
Loss of less than 1% Memecoins recorded slight losses, with
Dogecoin
And
Shiba Inu
Down less than 1% for each.
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Write to Jack Denton at jack.denton@barrons.com
