Bitcoin and the broader crypto market witnessed a halt on Monday as investors are looking for much awaited insights from the upcoming Federal Reserve meeting. Anticipation is mounting over potential indications of an increase in interest rates, and speculators have found themselves on edge. This sentiment had added to the further market’s downturn.
Bitcoin is down by over 5% in 7 days
The biggest crypto price dropped by over 2% in the last 24 hours. BTC is trading at an average price of $62,370, at the press time. It reportedly turned out to be a dip to a one week low. Bitcoin price has dropped by more than 5% in the last 7 days. However, its 24 hour trading volume is up by 18% to stand at $20.7 billion.
With this decline, the crypto market plunged by 3% over the last day to stand at $2.31 trillion. Alongside Bitcoin, other major cryptos like Ether, BNB, and XRP also incurred losses. This reflects the overall market sentiment. The fear and greed index shows that the investors’ sentiments have turned Neutral from greed with 57 points.
Ethereum, the second biggest crypto, dropped by over 4%, while Solana (SOL) price declined by 6%, in the last 24 hours. It is important to note that ETH and SOL prices have plunged by 10% and 28% in the last 30 days, respectively.
According to reports, the Depository Trust Company’s announcement further added to market uncertainty. It stated that crypto linked Exchange-Traded Funds (ETF) wouldn’t receive collateral value for line of credit facilities. It raised questions about its implications for digital asset markets, adding to the selling pressure.
BTC ETF prodigy
Demand for US spot-Bitcoin ETFs appears to be moderating. This comes in with Bitcoin’s advance in 2024 slowing to about 47% from over 70% in mid-March. Australia is poised for a wave of Bitcoin exchange-traded fund launches despite these developments.
Following the success of similar products in the US and Hong Kong, Australian issuers such as Van Eck Associates Corp. and BetaShares Holdings Pty are gearing up for listings on ASX Ltd. The ASX, which handles the majority of the country’s equity trading, is expected to approve the first spot-Bitcoin ETFs for the main board by the end of 2024.
The influx of US Bitcoin ETFs, totaling $53 billion this year, underscores the growing acceptance of digital assets in mainstream finance. This trend is further supported by the upcoming launch of funds investing directly in Bitcoin and Ether in Hong Kong.
