The cryptocurrency market appears to be quite vulnerable to ETF approvals, and the past 24 hours have brought further enhanced volatility to the entire sector.
After the hype has settled since the start of the work week, the largest cryptocurrencies, including one that got the green light from the Securities and Exchange Commission, have turned red.
BTC drops below $67,000
The beginning of the current working week was not able to predict what would happen. Bitcoin calmed down at around $67,000 after a quiet weekend, but that all changed Monday evening when reports emerged that the SEC may give the green light to an Ethereum exchange-traded fund by the end of the week.
Bitcoin, along with most of the cryptocurrency market, went on a wild ride and rose by $5,000 in hours. This brought it to its highest price in almost two months of around $72,000.
The rise stopped at that point and Bitcoin gradually started losing value. However, it traded in a range of around $70,000 until yesterday evening when it fell by a few thousand to below $68,000. This came hours before the deadline set by the Securities and Exchange Commission to decide whether to approve or reject all applications for ETFs.
More volatility ensued when the regulator actually approved eight Ethereum ETFs, and Bitcoin fell to $66,400 before rising $2,000. However, it lost some ground again and is now struggling below $67,000.
Its market capitalization has fallen to $1.310 trillion, and its dominance in altcoins stands at 50.2%.
Alternatives are in red
The above developments around Ethereum ETFs affected the price of the underlying asset further, as expected. ETH rose more than 20% on Monday to reach a six-week high of more than $3,900. It also fell and rose yesterday before SEC approval, but is now down 4% on the day at $3,655.
The rest of the companies with larger market capitalization are not in better shape. Solana, Dogecoin, Toncoin, Cardano, Avalanche, Polkadot, and Shiba Inu all fell by 5-8%. BNB, XRP, TRX, and BCH are also in the red.
The total cryptocurrency market capitalization has lost more than $100 billion since yesterday and fell to $2.617 trillion on CG.
The article “Tons of Volatility Amid SEC Approval of ETF: BTC, ETH Down 4% (MarketWatch)” appeared first on CryptoPotato.
