Bitcoin (BTC) Plunges 4% as Major Altcoins Follow Suit
Bitcoin (BTC) is facing a significant decline in its value, dragging down major altcoins along with it. According to CoinGecko, the largest digital coin by market cap is currently trading at $40,640, having plunged by almost 4% in the past day.
BTC Sheds Over 6% in Value in a Week, Disappointing Expectations
Over the past week, Bitcoin has shed more than 6% of its value. Just last week, the cryptocurrency was inching closer to the $49,000 mark for the first time since 2021. This recent decline has dashed the hopes of many who anticipated a surge in Bitcoin’s price following the historic approval of spot BTC exchange-traded funds (ETFs).
Historic Approval of Spot BTC ETFs Fails to Boost Bitcoin’s Price
Despite the roaring success of the ETFs and the anticipation of a price boom, Bitcoin’s price has continued to drop. The approval of spot BTC ETFs was a significant milestone in the crypto market, as it opened up traditional investors to the world’s largest and oldest cryptocurrency. However, data firm CryptoQuant and other market observers predicted a drop in the asset’s price, and their predictions have so far proven to be accurate.
Investors Cash Out Gains, Causing BTC’s Dip and Grayscale Exodus
One factor contributing to Bitcoin’s dip is the cashing out of gains by investors who had built up hype before the ETFs’ approval. Additionally, investors are swiftly exiting their positions in Grayscale’s Bitcoin Fund after its conversion to an ETF. This rush to secure profits from previously locked-in positions has led to the fund manager selling off Bitcoin, further impacting the cryptocurrency’s price.
Solana, Avalanche, and Cardano Among Top Altcoins Hit Hard by Bitcoin’s Tumble
Bitcoin’s decline has also had a negative impact on other major altcoins. Solana (SOL) has seen a drop of nearly 7% in the past 24 hours, now priced at around $89. Similarly, Avalanche (AVAX) has plummeted by over 8% in a single day, currently valued at approximately $31.50. Cardano (ADA), the ninth largest digital asset by market cap, has also suffered a significant plunge of nearly 7%, now priced at $0.47.
The current market volatility is highlighting the interconnected nature of cryptocurrencies. As Bitcoin experiences a decline, it influences the prices of other altcoins in the market. Investors and analysts will be closely watching how Bitcoin’s price evolves in the coming days and how it impacts the overall crypto market.
Edited by Andrew Hayward
Disclaimer: The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
Analyst comment
Negative news.
As an analyst, the market is likely to see continued volatility as Bitcoin’s decline affects other altcoins. Investors will closely monitor Bitcoin’s price in the coming days to assess its impact on the overall crypto market.
