By Bitcoin and other cryptocurrencies experienced a decline on Monday as the crypto sector anxiously awaits the potential approval of exchange-traded funds (ETFs) tied to spot trading of Bitcoin. The Securities and Exchange Commission (SEC) faces a looming deadline on Wednesday to determine whether to approve the spot Bitcoin ETF application filed by ARK Invest and 21Shares.
Bitcoin has dropped 0.4% to $43,826 over the last 24 hours. After surpassing $45,000 for the first time in over a year last Tuesday, the largest cryptocurrency has settled into a trading range of $42,000-$44,000.
Analysts anticipate that the approval of the ETF application and others could attract significant investments into the crypto space, with estimates ranging from approximately $164 billion to as much as $600 billion flowing into the ETFs and broader cryptocurrency trading.
Despite the excitement surrounding the potential approval, there is no guarantee of a sustained rally. Some experts predict that it may be a “sell the news” moment, where traders capitalize on the ETF launch to take profits. Julio Moreno, head of research at data provider CryptoQuant, suggests that Bitcoin could drop to $32,000 if such profit-taking occurs.
In addition to Bitcoin, Ethereum—the second largest cryptocurrency—experienced a 1.1% decline, reaching $2,212. Other smaller cryptocurrencies also faced setbacks, with Solana dropping by 4.3% and Cardano falling by 6.3%. Dogecoin experienced a decrease of 3.6%.
Overall, the crypto market remains cautious as investors await the SEC’s decision on the spot Bitcoin ETF application and its potential implications for the industry’s future.
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