WEEKLY WATCH - Cryptocurrency Markets Stabilize After ETF Rollercoaster, Bitcoin and Altcoins Experience Minor Losses

Bitcoin faces ups and downs following ETF developments, while alternative coins see slight declines.

The recent volatility in the cryptocurrency market, sparked by developments related to ETFs, has calmed down in the last few days. Despite the significant anticipation surrounding these events, the influence on cryptocurrency prices remained relatively subdued, indicating that the market had already incorporated this development.

Bitcoin’s (BTC) significant volatility unfolded last week against the backdrop of ETF-related events. From a hack targeting the SEC to controversial statements by Gary Gensler and the subsequent approval and launch of 11 ETF products in the US market, the primary cryptocurrency remained in the spotlight. On the day the products went live, BTC witnessed a surge, reaching over $49,000 for the first time in almost two years. However, within hours, the asset experienced a sharp decline, losing over seven thousand dollars in just over a day.  After hitting lows of under $41,600, BTC rebounded and settled around $43,000. Despite spending most of the weekend at this level, the cryptocurrency briefly dropped below $42,000 twice. Presently, Bitcoin trades below $43,000, with its market cap struggling at $835 billion. Its dominance over altcoins took a substantial hit in the past week, dropping below 50% on CMC.

Ethereum (ETH) has seen a 11% increase in the past week as investors shift their focus to the potential approval of spot Ether exchange-traded funds (ETFs) this summer. This comes as cryptocurrency bulls pivot towards Ether and away from Bitcoin following the regulatory approval of spot Bitcoin ETFs in the American market. Ethereum is currently trading at $2,532, its highest level since May 2022, marking its first winning week in three and its best week since March 2023.

Most alternative coins have mirrored Bitcoin's downward trend with marginal losses. Cardano, Avalanche, Dogecoin, and Polygon have all seen declines of approximately 1.5%. SOL and TRX, on the other hand, experienced larger drops of 2.5%, with SOL struggling at $95 and TRX down to $0.11. In contrast, Binance Coin and Chainlink recorded gains of around 4% overnight, resulting in BNB trading above $315 and LINK surpassing $15. Among the larger-cap altcoins, Toncoin saw the most significant gain, rising by 10% and reaching $2.3. INJ and APT are also in positive territory.

The total crypto market cap has witnessed a decrease of about $10 billion since yesterday, now standing at $1.680 trillion on CMC.