Bitcoin and other cryptocurrencies fell on Friday as the sector remains fixated on the possible approval of exchange-traded funds tied to spot trading of Bitcoin.
Bitcoin fell 1.5% to $43,450 in the last 24 hours. After a brief breakout above $45,000, the largest cryptocurrency now appears to have settled back into the $42,000-$44,000 trading range it has held since early December.
Speculation…
Bitcoin and other cryptocurrencies fell on Friday as the sector remains fixated on the possible approval of exchange-traded funds tied to spot trading of Bitcoin.
Bitcoin fell 1.5% to $43,450 in the last 24 hours. After a brief breakout above $45,000, the largest cryptocurrency now appears to have settled back into the $42,000-$44,000 trading range it has held since early December.
Speculation about Bitcoin ETF approval increased after TechCrunch reporter Jacquelyn Melinek reported on Thursday that the Securities and Exchange Commission would approve more than one spot Bitcoin ETF. Melinek cited sources familiar with the matter in a post on the social media platform X.
The SEC has a deadline of January 10 to decide whether to approve the spot Bitcoin ETF application filed by ARK Invest and 21Shares, but could also choose to approve multiple applications at once.
“Numerous meetings between the SEC, issuers and exchanges have fueled the narrative of impending approval. The introduction of ETFs could bring new investor groups from traditional finance, significantly improve market transparency and liquidity, and generate long-term capital inflow into the digital asset market,” wrote Matteo Greco, research analyst at Fineqia International.
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Besides Bitcoin, Ethereum – the second largest cryptocurrency – fell 2.7% to $2,222. Among smaller cryptocurrencies, Solana fell 6.2%, but Cardano fell 7.5%. Dogecoin fell 2.8%.
Write to Adam Clark at [email protected]