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The launch of Bitcoin (BTC) exchange-traded funds (ETFs) has initiated a considerable sell-off, resulting in a steep drop in the Bitcoin price.
The highly unpredictable fluctuations following the approval of the first US spot Bitcoin ETFs persisted over the last 24 hours, with a significant decline to below $41,600.
Following their approval and the start of trading on Thursday, the ETFs triggered a “sell the news” phenomenon, causing Bitcoin’s price to fall from its initial trading value of $46,500 at the time of approval to a low of $43,200 within hours on Friday.
In the last 24 hours, Bitcoin, the leading cryptocurrency by market capitalization, has recorded a 7% decrease.
Its gains over the preceding 30 days have been restricted to just 4%, negating much of the progress achieved during that timeframe.
See Also: Vanguard Have No Plans To Allow Spot Bitcoin ETF Trading On Its Platform
BTC’s Volatility Returns
Bitcoin and the broader cryptocurrency sector experienced a notably eventful week, during which the US SEC was anticipated to approve the first spot BTC ETFs in the nation.
While this indeed occurred on Wednesday, it was not without its challenges, including a hack the day before, misleading news, deleted and reposted statements, as well as contentious remarks from the agency’s chairman – Gary Gensler.
This naturally led to increased volatility, with numerous significant price shifts for BTC.
After the ETFs entered the US markets on Thursday, the asset initially surged to a 21-month high of over $49,000 before it swiftly dropped by three thousand dollars within minutes.
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The market was less volatile on Friday, but only during the Asian and European trading hours.
As the US trading hours approached their conclusion, the primary digital asset fell to below $41,600 for just the second time since the beginning of 2024.
Currently, it has regained some ground and is hovering near $43,000. However, its market capitalization has decreased to $843 billion, as has its dominance – now at 50% on CMC, down from over 53% earlier this week.
BTC Price Chart | Source: Coinstats
See Also: Robinhood Lists All 11 Spot Bitcoin ETFs On Trading App
Altcoins See Red
While most altcoins are currently experiencing losses, some have fared better than others. For instance, Ethereum has declined by a more modest 2.6% to $2,550.
Altcoins see red
Binance Coin (BNB), Ripple (XRP), Dogecoin, and Toncoin have also seen declines of less than 5%.
Conversely, assets such as SOL, ADA, AVAX, MATIC, BCH, DOT, and ATOM have dropped by more than 5%, with BCH experiencing a decline of up to 11%.
The total cryptocurrency market capitalization has witnessed a loss of $80 billion in a single day, now standing below $1.7 trillion on CMC.
The post BTC ETFs Hype Is Over As Bitcoin Price Drops To 2024 Lows appeared first on BitcoinWorld.
