Little over a week since the launch of spot Bitcoin exchange-traded funds (ETF), and the crypto markets are suffering.
Over the past week, Bitcoin (BTC) has shed more than 10% of its value, according to CoinGecko. The biggest digital coin by market cap is now priced at $41,002.
Last week, it was closing in on $49,000.
The long-awaited Bitcoin ETFs have been a roaring success—with BlackRock's iShares ETF collecting over $1 billion in assets under management.
So, why the dip in price? It probably has something to do with investors cashing out their gains from the initial ETF hype.
Some analysts said that ETF approval had already been "priced in." This likely means that traders and investors were unlikely to continue buying after the approval was made official.
The rest of the crypto market has been hit hard over the past week, too. Solana (SOL) has shed over 7% of its value in the past week and is priced at $92.38.
Bitcoin ETF May Actually Boost BTC Price as Analysts Flip on 'Sell the News' Fears
For the last few weeks, conventional wisdom has forecasted that the highly anticipated, likely imminent approval of a spot Bitcoin ETF in the United States would be a “sell the news” event—or one that, despite its apparently positive impact on Bitcoin, would likely cause the cryptocurrency’s price to fall in the immediate term as traders exited their BTC positions at the crest of ETF hype. Now, conventional wisdom is changing its tune. On Tuesday, K33 Research revised its outlook on the matter...
While Avalanche (AVAX) is down by more than 14%, trading hands for $32.82. Both assets had done very well in December as they attracted institutional investor interest.
Meanwhile, Ethereum (ETH), the second-biggest digital coin, has lost 8% of its value in the past week. It's now priced at $2,466.
Following the U.S. Securities and Exchange Commission's approval of 10 spot BTC ETFs, the crypto sphere is now awaiting spot ETH ETFs to drop.
Wall Street's top regulator on Thursday pushed back its deadline for a decision on Fidelity's proposed spot Ethereum ETF to March 5, leading to a price dip in the asset.
The entire crypto market now stands at $1.7 trillion, having dropped by 2.8% in the last 24 hours.
