According to a Bloomberg report, on Monday, both Bitcoin and the wider cryptocurrency market saw a drop in value.
This decline made some traders anxious, especially with an upcoming Federal Reserve meeting. They worried that the meeting might indicate that interest rates will stay high for a longer time.
Bitcoin and Altcoins See Decline, Questions Arise Over Crypto ETFs
Source: Bloomberg
The largest digital asset, Bitcoin, hit a one-week low on Monday before recovering slightly, trading around 2% lower at $62,505 by 12:30 p.m. in Singapore. Alongside Bitcoin, smaller tokens like Ether, BNB, and XRP also experienced losses.
The Depository Trust Company, responsible for settlement and clearing services in the US, made an announcement on Friday. They stated that crypto-linked ETFs would not receive collateral value for line-of-credit facilities, sparking questions about potential implications for digital asset markets.
US Spot-Bitcoin ETF Demand Wanes as Bitcoin’s 2024 Growth Slows
Demand for approximately a dozen US spot-Bitcoin ETFs continues to decline, reflecting a waning interest in these investment vehicles.
Bitcoin’s upward trajectory in 2024 has slowed to around 47%, down from over 70% in mid-March. This moderation in growth follows a period when the token reached a record high of almost $74,000.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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