Bitcoin fell on Friday, capping a big week for the cryptocurrency with the creation of 11 Bitcoin exchange-traded funds in the United States after a years-long battle to get the asset accepted by institutions.
price of Bitcoin It fell 5.79% to $43,830.28, according to Coin Metrics, reversing gains from earlier this week and sending much of the crypto market into the red. At one point on Thursday, it rose to $49,058.48, its highest since December 2021. The stock ended the week slightly lower, down 0.01%.
meanwhile, ether The stock fell -1.02%, cutting off its previous gains. This week was up 15%, its first winning week in three years, and the best week since March 2023. Following the widely anticipated approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission, investors have switched away from Ethereum and Bitcoin. On Thursday, it reached its highest level since May 2022.
“In our view, the crypto market has already moved on to the next story, with Ethereum rallying more than Bitcoin, but this is probably the second-largest cryptocurrency,” said Citi analyst Alex Saunders. “This comes from the expectation that larger tokens may also receive ETF approval.” Friday memo.
Bitcoin falls to end flat week
The SEC is expected to make decisions on spot ETH ETF applications starting in May. black rock, invescoArk and VanEck are among the companies expected to receive approval, as well as Grayscale, which is seeking to convert its existing operations. Ethereum Trust (ETHE) Invest in ETFs.
Many expected the long-awaited Bitcoin ETF approval to be selling news, with investors and miners saddled with large unrealized gains as the ETF buzz pushed Bitcoin up more than 60% over the past three months. . Market participants across the board agree that Bitcoin prices would benefit from ETFs, but it will take some time for them to take effect as crypto newbies become familiar with Bitcoin assets and gradually enter the market. It may take a while.
“We think the potential for Bitcoin to be included in portfolios is becoming more pronounced, but widespread portfolio inclusion is still a long way off,” Sanders said.
In other places, litecoinBitcoin, whose value proposition is similar to the original vision of Bitcoin as an everyday payment medium, was another bright spot in the cryptocurrency market on Friday, on pace for an 11% gain for the week. .
Cryptocurrency stocks fell along with Bitcoin. coinbase and micro strategy They were 7% and 9% lower, respectively. Even miners increased their losses significantly from Thursday. clean spark fell 12%, iris energy fell more than 14%, marathon digital fell 15%, riot platform It fell back by 10%.
—CNBC’s Michael Bloom and Nick Wells contributed reporting.
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