Bitcoin plunges ahead of potential spot ETF approval by SEC
01/03/2024 21:19
Bitcoin (BTC-USD) plunged on Wednesday morning as the digital currency fell as low as $41,454 which was equivalent to a 7.8% decline.
Aleksandra Zhilenkova
Bitcoin (BTC-USD) plunged on Wednesday morning, with the digital currency notching a 7.8% decline and falling as low as $41,454. The digital token has since recovered a chunk of its losses but still trades in the red by roughly 5.7%, as it is now hovering near the $42,400 level.
The move lower in Bitcoin is not clearly linked to a specific act or event. However, market participants might be hedging against the possibility of a non-approval decision by the U.S. Securities and Exchange Commission of a Spot Bitcoin ETF that is scheduled next week.
Despite the leg lower on Wednesday, Bitcoin trades higher by 40.6% over the past 6 months and has also surged 155.7% over the past year.
Moreover, Bitcoin’s decline has also brought down other crypto assets such as Ethereum (ETH-USD), Cardano (ADA-USD), Litecoin (LTC-USD), Tether (USDT-USD), and Solana (SOL-USD).
For investors who are tracking the price action of Bitcoin, they can also look to monitor Bitcoin Futures exchange traded funds. Some funds are as follows:
- ProShares Bitcoin Strategy ETF (BITO)
- Valkyrie Bitcoin and Ether Strategy ETF (BTF)
- VanEck Bitcoin Strategy ETF (XBTF)