2024-01-13 10:48:43
The cryptocurrency Bitcoin suffered sharp losses following the broad gains it achieved following the US approval of cryptocurrency exchange-traded funds, a move that had seen numerous regulatory consequences.
Bitcoin fell by more than 2 percent, or regarding a thousand dollars, to $42,920, following it crossed the threshold of $49,000 following America’s approval of exchange-traded funds, which is the highest level in more than two years. On the other hand, Ethereum achieved weekly gains of 15 percent, the first gain in 3 weeks, and the best weekly performance since March of last year.
The state of digital currencies pushed investors towards Ethereum in exchange for abandoning Bitcoin following the expected approval of the US Securities and Exchange Commission for Bitcoin ETFs.
Citi analyst Alex Saunders said in a note that investors rushed towards Ethereum amid expectations that the second largest cryptocurrency would receive regulatory approval at the level of ETFs.
The US Securities and Exchange Commission is scheduled to give its decision on this step at the beginning of next May.
Many expected that regulatory approval for Bitcoin ETFs would be like “buying on a rumor and selling on the news,” as investors and miners postpone high unrealized profits, as anticipation of this step led to a 60 percent rise in Bitcoin in the past three months.
Market participants expected this approval to lead to a rise in Bitcoin, but it may take time for new entrants to the cryptocurrency market to become more familiar with the asset and gradually enter the market.
1705146817
#Bitcoin #suffers #severe #losses
