Bitcoin faces 5% drop post-Matrixport report; altcoins follow suit. Uncertainty lingers amid SEC ETF decision. Crypto market cap down 4.91%. (Pexels)
Bitcoin experienced a significant downturn on Thursday, plummeting by five percent. Its value, which stood at $45,201 twenty-four hours ago, dropped to $43,070. This decline followed a report from Matrixport, a crypto financial services firm, predicting the rejection of Bitcoin spot ETF proposals by the SEC in the US. Analysts foresee continued volatility until the SEC makes a clear decision on ETF approval.
The Matrixport report caused panic among some traders, resulting in selloffs. Despite briefly dipping below $41,500, Bitcoin swiftly recovered and is currently trading around $43,000. According to Edul Patel, CEO of Mudrex, Bitcoin's support is at $43,150 with resistance at $43,600.
Ether mirrored Bitcoin's loss, experiencing a 5.92 percent decline, trading at $2,227 with a drop of $139 in the last 24 hours.
Thursday saw a widespread decrease in various altcoins including Tether, Ripple, Solana, Cardano, Avalanche, and Dogecoin. Other cryptocurrencies like Polkadot, Polygon, Chainlink, and Shiba Inu also recorded losses.
The sudden Bitcoin decline triggered a more than 20 percent drop in altcoins within minutes, though some, like ARB and LDO, quickly rebounded. The cause of this decline remains uncertain, with speculation about a Matrixport report on BTC spot ETF denial. However, the accuracy of this information is uncertain.
The overall crypto market cap decreased by 4.91 percent in the past day, standing at $1.65 trillion according to CoinMarketCap.
Despite this downturn, a few lesser-known cryptocurrencies, including Leo, Iota, Cartesi, Dogefi, and Bitcoin Hedge, managed to gain slightly.
Notably, standout performers for the day were L2 Arbitrum, ARB (+ three percent), and liquid staking solution Lido Finance, LDO (+ eight percent). While liquidations surpassed half a billion dollars, total crypto exchange volumes exceeded one trillion dollars for the first time in two years, indicating a resurgence of significant capital inflow into the crypto market, as noted by the CoinSwitch market desk.
