After beginning 2024 at its highest level in nearly two years, Bitcoin (BTC-USD) has hovered below $44,000 this week. Ethereum (ETH-USD), too, has given up this week’s early gains and is trading at about $2,241. Still, the two major cryptocurrencies remain 161% and 79% higher, respectively, over the past 52 weeks. The correction was primarily due to hints from Matrixport of a possible delay in crypto ETF approvals, which highlighted that any rejection could mean a double-digit drop in BTC prices. As traders await a final verdict from the SEC between January 8 and 10, volatility could spike.
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Blackrock (NYSE:BLK), ARK, 21 Shares, and Fidelity are some of the names looking to launch spot BTC ETFs. Importantly, fees could play a major role in deciding the popularity of these ETFs.
Furthermore, Solana (SOL-USD) and Ripple (XRP-USD) are also showing signs of weakness, with high-single-digit percentage drops this week. The substantial price corrections on Wednesday led to major liquidations in the crypto space.
In addition, an investigation by Guardian Australia has revealed that the Chief Executive Officer of Hyperverse, a collapsed crypto fund, may not really exist. It has emerged that none of the universities or companies mentioned in the CEO’s credentials have any record of him.
Nevertheless, MicroStrategy’s (NASDAQ:MSTR) Michael Saylor plans to sell MSTR shares worth $216 million to buy more Bitcoin. In December, MSTR sold shares to the tune of $610 million to add to its Bitcoin hoard.
In the meantime, the rally in BTC could continue taking a breather over the next few sessions.
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