In this week’s edition of CoinNews, we delve into the latest and most impactful developments in the cryptocurrency world.
From the historic approval of Bitcoin ETFs by the SEC to the diverse market predictions following this decision, here are the significant shifts that we have covered of the past week in the crypto landscape.
The approval of spot BTC ETFs
The past week in the cryptocurrency industry has been marked by a significant milestone: the US Securities and Exchange Commission (SEC) officially approved the launch of spot Bitcoin exchange-traded funds (ETFs).
This long-awaited decision allows investors to gain direct exposure to Bitcoin without the complexities of owning the cryptocurrency itself.
The approval covers a range of ETFs from major players like BlackRock, Ark Invest, Grayscale, and others, signalling a major shift in the recognition of cryptocurrencies as a legitimate asset class.
The move is expected to attract a broader range of investors, simplifying their entry into the crypto market.
A successful start
The debut of the spot Bitcoin ETFs gathered a collective trading volume, exceeding $4.5 billion on the first day itself.
BlackRock’s iShares Bitcoin Trust (IBIT) led the pack, accounting for 22% of the total volume. Fidelity and Grayscale also saw significant trading volumes, indicating strong investor interest in these new financial products.
However, not all ETFs experienced the same level of activity, with some like Valkyrie, WisdomTree, and Hashdex seeing less trading volume initially.
Varied forecasts for BTC
Following the SEC’s approval, the market buzzed with speculation about Bitcoin’s ($BTC) future price.
Analysts offered a wide range of predictions, with some foreseeing a dip to $38,000 and others projecting a surge to as high as $100,000.
The initial market reaction saw Bitcoin’s price briefly surpass $48,000, but it soon retreated, reflecting the market’s uncertainty and the varied sentiments among investors.
This divergence in forecasts underscored the inherent volatility and unpredictability of the cryptocurrency market.
Crypto market gets over the ETF mania
After the initial excitement surrounding the ETFs died down, the cryptocurrency market experienced a downturn.
The fading enthusiasm for spot ETFs, combined with regulatory delays for an Ethereum ETF and a series of long liquidations, contributed to this shift.
Major cryptocurrencies, including Bitcoin, Ethereum, and even Dogecoin, have seen significant drops as investors were forced to close their positions due to unfavourable market movements.
The market’s capitalisation has now slid down by over 3%, reflecting a recalibration of expectations and a more cautious approach from investors.
Trump memecoin blasts by over 100%
In a surprising turn of events, the Donald Trump-themed meme coin, $MAGA, saw a dramatic increase of 115%. This was triggered by Trump’s comments against central bank digital currencies (CBDCs).
The former president’s firm opposition to CBDCs, expressed during a campaign event, resonated with some crypto advocates, leading to a surge in the meme coin’s value.
The coin continued to trade above the $1 mark, down from its recent highs but still up by over 40% daily.
