- Bitcoin has plunged over 6% in the past week to around $40,600 after nearing $49,000 per coin last week. Investors are cashing out gains from ETF hype and exiting Grayscale’s Bitcoin Trust.
- Major altcoins like Solana, Avalanche, and Cardano have seen even steeper declines over the past day, shedding 7-8% of their value.
- The crypto market is experiencing high volatility after last week’s surge and the historic Bitcoin ETF approvals. It’s uncertain if assets will rebound soon or continue falling.
Cryptocurrencies have taken a major hit over the past week, with Bitcoin sliding to around $40,600 along with steep declines for major altcoins like Solana and Avalanche. This comes after a surge for the crypto market last week.
The Bitcoin Breakdown
Bitcoin, the largest cryptocurrency by market cap, has plunged by almost 4% in the past day and over 6% in the past week according to CoinGecko. The price slide comes after Bitcoin was closing in on $49,000 per coin last week for the first time since 2021.
Some expected Bitcoin’s price to surge after the historic approval of the first Bitcoin spot ETFs in the US. However, data firm CryptoQuant predicted the price would drop instead. So far, it has dropped despite the success of the ETFs.
Investors are cashing out gains from the hype before the ETF approvals. Also, investors are exiting Grayscale’s Bitcoin Trust following its conversion to an ETF, causing the fund manager to sell Bitcoin.
Alts Take a Beating Too
Other top 20 cryptocurrencies have been hit even harder than Bitcoin. Solana (SOL) has shed nearly 7% in the past 24 hours and is priced around $89 after surging in value since October.
Avalanche (AVAX) is down over 8% in a day and valued around $3,150. Cardano (ADA), the 9th largest coin, has plunged 7% and is priced at $0.47.
The crypto market is experiencing significant volatility after last week’s surge. Bitcoin has slid the most but major altcoins are seeing an even steeper selloff. The declines show the crypto market’s sensitivity to major events like the ETF approvals. It remains to be seen whether the assets will rebound or continue falling.