Prices for Bitcoin declined after US ETF approvals led to sell-the-news events
As a result of recent volatility driven by the US Securities and Exchange Commission and 11 spot ETF launches, Bitcoin has settled at around $43,000.However, every week, BTC is in the red, unlike most cryptocurrencies such as ETH, which has soared.
BTC Down on ETF Approval Week
After years of delaying and rejecting innumerable applications, the US Securities and Exchange Commission finally approved spot Bitcoin ETFs on Wednesday, and the products hit the market the next day.
The entire process was not without setbacks, including a cyberattack and a contentious statement by the SEC’s chair, Gary Gensler. This increased volatility for the underlying asset, which jumped to more than $49,000 on Thursday after the ETFs went online before plummeting by more than $700 in the next 36 hours.
The weekend has been much less exciting. BTC has recouped some of its losses and has been trading in a narrower range of approximately $43,000 for the previous two days or so. Nonetheless, the asset is down by more than 2% weekly, bringing its market cap to $840 billion. Its dominance over altcoins has decreased to less than 50%. The metric has dropped more than 3% in the last week or so, after peaking at 53%.
While BTC fell during the week that saw many ETFs authorized, Ethereum has risen, possibly fuelled by rumors that it will also have exchange-traded products available at some time. Every week, ETH has increased by more than 13% and now trades above $2,500. Every week, Tron and Chainlink have seen comparable gains. Polkadot, Avalanche, Solana, Polygon, Litecoin, and Dogecoin are among the coins that have followed suit. In fact, BNB is the only top 10 alt that has experienced a modest daily dip. The total cryptocurrency market cap has increased by $40 billion since last Sunday but has decreased by more than $80 billion since the top on Thursday.