The launch of spot Bitcoin exchange-traded funds (ETF) has caused a significant dip in the crypto market over the past week. Bitcoin has lost more than 10% of its value, dropping to $41,002 from a high of nearly $49,000. The long-awaited Bitcoin ETFs have been successful in attracting over $1 billion in assets under management, but the dip in price may be attributed to investors cashing out their gains from the initial ETF hype.
The rest of the crypto market has also been hit hard, with Solana shedding over 7% of its value and Avalanche down by more than 14%. Even Ethereum, the second-biggest digital coin, has lost 8% of its value, now priced at $2,466. Following the approval of 10 spot BTC ETFs, the crypto sphere is now eagerly awaiting spot ETH ETFs to drop. However, the U.S. Securities and Exchange Commission’s decision to push back its deadline for a decision on Fidelity’s proposed spot Ethereum ETF to March 5 has also led to a price dip in the asset, causing the entire crypto market to drop by 2.8% in the last 24 hours.
In conclusion, the significant drop in the crypto market can be attributed to the launch of spot Bitcoin exchange-traded funds, which have caused Bitcoin and other major cryptocurrencies to lose value. Despite the success of Bitcoin ETFs in attracting assets under management, it seems that investors may have cashed out their gains from the initial hype, leading to the market downturn. The delay in the approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission has also contributed to the overall drop in the crypto market, which now stands at $1.7 trillion, having decreased by 2.8% in the last 24 hours.