The first trading day for 11 spot Bitcoin ETFs on the US stock markets was anything but uneventful. The market witnessed numerous price fluctuations, resulting in both a multi-year peak and a significant dump. This rollercoaster ride brought about mixed reactions, not only for Bitcoin but also for altcoins, which are currently experiencing minor losses on a daily scale. However, Bitcoin Cash (BCH) and FTX Token (FTT) have defied the trend, skyrocketing by double digits.
The US Securities and Exchange Commission’s (SEC) recent approval of almost a dozen exchange-traded funds tracking Bitcoin’s performance brought both recognition and controversy to the primary cryptocurrency. Despite the green light from the regulator, SEC Chairman Gary Gensler had some negative remarks about the asset, which triggered a few accidents along the way. This criticism contributed to the increased volatility of Bitcoin.
On Wednesday, Bitcoin experienced a series of rapid price swings, moving up and down by several thousand dollars. However, the situation escalated further on Thursday, which marked the first trading day for the newly approved Bitcoin ETFs. Within a single day, the trading volumes skyrocketed to over $4 billion, pushing Bitcoin’s price above $49,000 for the first time in nearly two years. Moments later, the asset experienced a sharp drop of over three thousand dollars, leading to millions of dollars in liquidations. As of now, Bitcoin has somewhat stabilized at around $46,000, with a market capitalization just above $900 billion.
While most alternative coins mirrored Bitcoin’s highly volatile performance over the past few days, they have since calmed down, albeit with minor losses. Ethereum (ETH), Binance Coin (BNB), Solana (SOL), Ripple (XRP), Cardano (ADA), Avalanche (AVAX), Dogecoin (DOGE), and Polkadot (DOT) are all slightly in the red on a daily scale. However, Bitcoin Cash (BCH) and Litecoin (LTC) have defied the market trends. BCH has experienced a remarkable increase of more than 11%, reaching $285, while LTC trades close to $75 after a 5% surge. Meanwhile, FTX Token (FTT), the native token of FTX exchange, has performed exceptionally well among the top 100 altcoins, surging by 19% and trading above $3.
The wild swings in Bitcoin and altcoin prices have had a noticeable impact on the overall crypto market. Overnight, the total market capitalization decreased by approximately $20 billion, settling at $1.760 trillion.
The debut of Bitcoin ETFs on the US stock markets has brought about significant volatility and market reactions. Despite the SEC’s approval, the controversial comments from the regulatory chairman have influenced traders and investors, resulting in substantial price swings. While Bitcoin has somewhat stabilized, altcoins have experienced minor losses, with a few exceptions like Bitcoin Cash, Litecoin, and FTX Token. The impact on the overall crypto market is notable, with a decrease in market capitalization overnight. As the market continues to navigate these new investment vehicles, only time will tell how the Bitcoin ETFs will shape the future of cryptocurrency trading.
Leave a Reply