Tons of Volatility Amid SEC’s Ethereum ETF Approval: BTC and ETH Drop by 4% (Market Watch)
The crypto market experienced heightened volatility in the past 24 hours following the SEC’s approval of Ethereum ETFs. This approval had a significant impact on the largest cryptocurrencies, causing them to turn red.
Bitcoin, which had been trading around $67,000 at the start of the week, experienced a surge after reports of the potential Ethereum ETF approval emerged. It reached its highest price in almost two months at nearly $72,000. However, the rally did not last, and BTC gradually lost value, dropping to under $68,000 before the SEC’s decision deadline.
When the regulator actually approved eight Ethereum ETFs, BTC dropped to $66,400 before briefly rebounding. Currently, it is struggling below $67,000 with a market cap of $1.310 trillion and a dominance over altcoins of 50.2%.
The approval of Ethereum ETFs had the most significant impact on the price of Ethereum itself. ETH experienced a 20% surge, reaching a six-week peak of over $3,900, before fluctuating leading up to the SEC approval. Currently, it is down 4% on the day at $3,655.
Other large-cap altcoins such as Solana, Dogecoin, Toncoin, Cardano, Avalanche, Polkadot, and Shiba Inu also experienced declines of 5-8%. BNB, XRP, TRX, and BCH are also in the red.
As a result of these developments, the total crypto market cap has decreased by over $100 billion since yesterday, currently standing at $2.617 trillion on CoinGecko.