The price of Bitcoin fell more than 4% after it rose above $57,800 two days ago for the first time since May. The world’s largest cryptocurrency is currently trading at $55,526, down 3.3% for the past 24 hours. It is still up 12% over the past seven days.
The vast majority of the top 50 cryptocurrencies were in red as of 4 p.m. Eastern Time on Tuesday. Ether dropped 0.22% to $3,487. It fell 0.6% over the past 24 hours. Dogecoin fell 0.63% recorded a 1.4% loss over the past 24 hours, recently trading at $0.22.
The major cryptocurrency’s price swing is not unusual considering a recent uptick in volatility. The BitVol Index jumped more than 10% over the last 10 days according to Louis LaValle, managing director at crypto fund manager 3iQ Digital Assets.
Interestingly, some analysts ascribed the downturn of Bitcoin to the contagion of the smaller cryptocurrencies. From a technical perspective, it could embrace a two-week consolidation pase, as a new short-term countertrend signal appeared last week on Sunday.
Nevertheless, after the consolidation, it could test a record high in the coming weeks. Bitcoin could test a record high as the cryptocurrency maintains a positive intermediate-term momentum.
The market has seen institutional inflows, amid optimism that the U.S. Securities and Exchange Commission would soon approve a Bitcoin futures ETF.
Bitcoin could see prices exceed $70,000 by the end of 2021, based on stock-to-flow models.
The founder and CEO of Volt Equity stated the Securities and Exchange Commission’s Chair, Gary Gensler is “actually pro-Bitcoin”. Tad Park mentioned that Gensler is also “a little bit understood” regarding his perspective on crypto circulation in the U.S.
He voiced support for the SEC regarding the regulator’s unwillingness to approve an ETF that would track Bitcoin directly.
Volt Equity’s CEO specifically referred to the commission’s protection concerns. Park stated that unless companies can show they can custody ETF and actually address issues Gensler specifically mentioned, it’s not going to work. He noted that “at least half” of crypto ETF applications with the commission are not valid. They are not addressing what SEC’s chair is saying according to Tad Park.
He emphasized that Volt Equity’s crypto ETF doesn’t provide direct exposure to Bitcoin. Volt Equity tracks major Bitcoin-correlated companies, including Tesla, MicroStrategy, and Twitter.
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