On Friday, when many popular digital assets were gaining value, the price of SEI took a hit, dropping by more than 3% due to ongoing panic selling.
There’s a saying on Wall Street: “As goes January, so goes the year.” People who follow the January Barometer believe that how well the market does in the first month can give a hint about how the rest of the year might go.
Crypto Market Optimism Amid Bitcoin ETF Anticipation
The recent performance of major digital assets suggests a positive trend, with some enthusiasts even claiming that “crypto is back from the grave.” There is increasing optimism that the US Securities and Exchange Commission (SEC) might approve the first batch of spot Bitcoin exchange-traded funds (ETFs) in the upcoming week.
The highly anticipated Bitcoin ETF is proving to be a beneficial factor for the cryptocurrency market, reflected in a 1.8% increase in BTC price and a 1.4% rise in Ethereum over the last 24 hours. While smaller tokens, known as altcoins, are experiencing fluctuations between gains and losses, overall investor sentiment towards the crypto market remains predominantly bullish.
Challenges for SEI Token as Prices Plummet
The outlook for SEI, the token associated with the layer-1 Sei Network launched last year, appears grim. Earlier today, the SEI token experienced a significant decline of nearly 7.5%, dropping to $0.73. This sharp decrease led to a decline in its market capitalization from $1.82 billion to $1.7 billion within just 24 hours. Although the token has recovered some losses, it continues to trade in the red. As of the latest update, SEI’s price stands at $0.74, reflecting a decrease of over 3% in the past 24 hours.
SEI Price Chart – Source: CoinMarketCap
Simultaneously, trading volumes witnessed a substantial drop of more than 46%, amounting to $865 million in the last 24 hours. This decline suggests a diminishing interest among retail investors in the SEI crypto asset. Data from CoinGlass indicates that nearly $88 million in crypto long positions were liquidated during this period, including $1.51 million in SEI long positions.
SEI and SEIYAN Prices Affected Amid Market Decline
The recent dip in SEI token prices seems to have had a ripple effect on the Dragon Ball-inspired meme coin, SEIYAN. In the past few days, SEIYAN experienced a decline in its price action. Although it has seen a 6% increase over the last seven days, it pales in comparison to the significant 285% surge witnessed in the previous 14 days. This data indicates a diminishing interest in the SEI token, potentially impacting its prices in the short term.
As attention shifts to the pending decision on the spot Bitcoin ETF by the US securities watchdog, analysts predict that approval could bring substantial investment into the crypto sector. The reasoning is that investors would gain the ability to invest in Bitcoin without needing to navigate the complexities of crypto exchanges and wallets.
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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