Bitcoin Scales $49K Amid ETF Frenzy Trade
By Laxmikant Khanvilkar
Virtual digital assets (VDA) experienced huge volatility in the last 24-hours linked to the U.S. regulators approval of the spot bitcoin ETFs, a landmark decision for the digital asset industry.
Although, this decision will provide investment option for investors, particularly the institutional investors, by broadening the investor base, but is also likely to trigger massive price volatility for the grand old cryptocurrency.
Bitcoin (BTC) initially surged to $49,000 for the first time since December 2021 as trading in the U.S.-listed spot bitcoin ETF commenced. Later, it gave up all its gains and buckled below $46,000.
BTC, recently changed hands at $46,423 down 0.3%.
Ethereum (ETH), the second largest cryptocurrency, remained in a defiant mode amid hopes of ETH ETF funds securing regulatory approval. The Ethereum blockchain token scaled above $2,600 mark for the first time in 20 months. It was last seen changing hands at $2,609 gaining 1.1%.
On Wednesday, the U.S. securities watchdog made history by begrudgingly approving a batch of bitcoin spot ETF. The completion of excruciating process of going mainstream fuelled optimism among traders. Obviously, this will reflect in increased investor participation as well as in price and volume over the due course.
The commencement of trading in 11 ETFs is expected to trigger significant buying of bitcoin, making it harder to buy. Hence, the focus will shift to other coins.
Currently, large-cap tokens such as Binance, Solana, Cardano, Dogecoin, are gaining.
Apparently, the global crypto market cap increased 0.5% to $1.77 trillion in the last 24 hours. Conversely, the total crypto market volume fell 6.7% to $105.4 billion. Total volume in DeFi is currently $8.3 billion, and all stablecoins are $94.1 billion, representing 7.9% and 89.2%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.2%, down 0.4% over the day.
The IC15 index, the barometer of the top fifteen tokens, rose 0.4% to 59,597.
Meanwhile, there’s a clear divide among banking giants to allow their clients to trade in bitcoin ETF. UBS and Citi Bank has decided to let select customers to trade in bitcoin ETFs contrary to Vanguard’s decision of blocking customers from entering into such transactions.
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