As Bitcoin (BTC) plummets, major altcoins are taking it with them. The largest digital coin by market capitalization is currently trading at $40,640, down nearly 4% over the past day, according to CoinGecko.
Over the past week, BTC has lost over 6% of its value. Last week, the asset increasingly referred to as “digital gold” quickly closed at $49,000 per coin for the first time since 2021.
BTC’s plunge follows the historic acceptance of spot BTC exchange-traded funds (ETFs). The popular investment vehicle has begun trading in the United States after a decade of refusal by regulators.
Some market observers expected the price of BTC to surge now that traditional investors are finally exposed to the largest and oldest cryptocurrency. However, other companies, such as data firm CryptoQuant, predicted that asset prices would fall. And so far, that has been the case despite the tremendous success of ETFs.
A decline in BTC is looming as investors cash in on the profits made from the hype that built up prior to the ETF’s approval.
Additionally, investors are quickly cashing out after Grayscale’s Bitcoin fund was converted to an ETF. Traders are exiting positions to take profits after previously being locked in funds, which is causing fund managers to flog BTC.
Other top 20 cryptocurrencies were hit harder. Solana (SOL) has lost nearly 7% in value over the past 24 hours and is priced at around $89. The major coin has soared in value since October, reaching a high of $122 in December.
Elsewhere, Avalanche (AVAX) also had another big decline, falling more than 8% in one day. The current value is approximately $31.50.
The price of Cardano (ADA), the 9th largest digital asset by market capitalization, fell nearly 7% to $0.47.
Editor: Andrew Hayward
disclaimer
The views and opinions expressed by the author are for information purposes only and do not constitute financial, investment or other advice.
