Bitcoin Falters On ETFs Rejection Talks
By Laxmikant Khanvilkar
Investors of virtual digital assets (VDA) are finding it hard to digest the sharp decline in prices of Bitcoin (BTC), Ethereum (ETH) and other tokens in the last 24-hours. The cryptocurrency market wiped off entire gains accumulated over the last couple of days as talks of the U.S. Securities Exchanges Commission (SEC) rejecting spot bitcoin exchange traded funds (ETFs) surfaced, triggering massive liquidation pressure.
Suddenly, the biggest catalyst behind the rally so far, has gone missing, causing a gloom in the markets.
Bitcoin (BTC), the largest cryptocurrency by market capitalisation, lost nearly 10% dropping near $40,000 mark at one point in time. It has retreated from that level but is still trading at $42,859, down 5.2%. Ethereum (ETH), the second largest cryptocurrency followed the suite. It was recently changing hands at $2,211, down 6.5%.
The Singapore-based digital asset firm Matrixport published a report forecasting the SEC to reject all spot bitcoin ETF applications, overturning its Tuesday outlook projecting an imminent approval and a BTC rally to $50,000.
The jitters around ETFs approval spurred liquidation of $500 million worth of positions across derivatives exchanges.
Other large-cap tokens such as XRP, Solana, Cardano, Dogecoin, etc were seen sitting on huge losses.
Amid broader markets slide, the Arbitrum’s ARB token set a new record of nearing $2 mark and total value locked (TVL) at $2.5 billion.
The global crypto market cap dropped 4.9% to $1.64 trillion in the last 24 hours. On the other hand, the total crypto market volume rose 46% to $116.6 billion. Total volume in DeFi is currently $11.2 billion, and all stablecoins are $103.3 billion, representing 9.6% and 88.6%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.2%, up 0.16% over the day.
The IC15 index, the barometer of the top fifteen tokens, slumped 5% to 54,732.
Meanwhile, observers believe the SEC will approve spot bitcoin ETFs and the chances of the same are 98%.
Goldman Sachs, the high-profile Wall Street investment bank, looks likely to play a key role of being an “authorized participant” for BlackRock and Grayscale’s bitcoin ETFs.
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