While the U.S. equity markets remain closed today, the world of cryptocurrencies remains open for business. Bitcoin (BTC-USD) and Ethereum (ETH-USD) are down by nearly 1.4% and 0.9%, respectively, at the time of writing.
After months and months of apprehensive wait, the U.S. Securities and Exchange Commission finally gave its blessing to sport BTC ETFs last week. As expected, the positive development was followed by a sharp bout of profit-booking, with BTC contracting from nearly $48,000 to $42,300. Solana (SOL-USD), one of the top-performing cryptocurrencies of 2023, has also tanked by nearly 15% so far this month.
Although the 11 spot BTC ETFs debuted with impressive trading volumes, prices have trended lower for multiple names. In sync, major crypto-focused stocks, including Coinbase (NASDAQ:COIN), MicroStrategy (NASDAQ:MSTR), and Riot Platforms (NASDAQ:RIOT), are down over 20% each so far this month.
With the BTC ETF approval now in the rearview mirror, Ethereum could become the center of traders’ attention. Several entities have already applied for spot ETH ETFs, and a decision from the SEC is awaited in May. Still, traders may opt to cut down on risk levels over the next few weeks as the global economy enters an uncertain phase. Additionally, any unexpected moves from central banks could lead to a sharp wipeout of investors’ paper profits.
Meanwhile, BTC is now moving dangerously close to its key support level of around $41,000.
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