Bitcoin
and other cryptocurrencies were stabilizing on Thursday, although volatile trading looks set to continue ahead of the potential approval of exchange-traded funds tied to spot trading of the largest digital currency.
Bitcoin has risen 2.2% to $43,395 over the past 24 hours. The cryptocurrency broke above $45,000 on Tuesday but subsequently fell as low as $41,361 on Wednesday.
Most of the drop occurred soon after Matrixport, a crypto financial-services platform, predicted on Wednesday that the Securities and Exchange Commission would reject all spot Bitcoin ETF applications in January.
The SEC has a deadline of Jan. 10 to determine whether to approve the spot Bitcoin ETF application filed by ARK Invest and 21Shares. While last-minute doubts about the ETF approval have put a dent in Bitcoin’s rally, the cryptocurrency remains up 56% over the past three months, suggesting the market still thinks the SEC is more likely than not to give a green light for the funds.
“This price movement is likely to be short-term, and observers, experts, and the markets clearly expect that an approval for a Bitcoin ETF in the U.S. is a matter of when, not if,” said Joel Kruger, market strategist at LMAX Group.
Beyond Bitcoin,
Ethereum
—the second-largest cryptocurrency—was down 6.2%, at $2,228. Among smaller cryptocurrencies,
Solana
was falling 9.1% and
Cardano
dropped 8.6%.
Dogecoin
fell 9.5%.
Write to Adam Clark at [email protected]
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