It was a historic moment when the U.S. Securities and Exchange Commission approved 11 applications for Bitcoin ETFs. The community has applauded the speculation that the token will now inch closer to ATH, or at least continue to surge on a daily basis. But the questions surrounding BTC speak to its potential to become a way for people to retain their value.
This is because price volatility has not been resolved despite the approval of the ETF application. It was not initially raised considering that all financial or investment products are exposed to market risk. The belief that the BTC table would change significantly remained strong.
This was evident at the start of a new phase, with BTC briefly surpassing the $47,000 milestone. Now comes the volatility aspect and the question of whether BTC will become a key tool for people to store their value. BTC fell significantly by ~$7,000 and is currently trading at $40,624.97. This is a 2.74% decline, but reflects declines of 4.72% and 7.13% in the same order over the past 7 and 30 days.
Another reason the decline is surprising is that it was only recently that Bitcoin was reported to have surpassed silver to become the second-best commodity ETF.
Price fluctuations are very normal, but it is when there are major ups and downs that questions about a product arise. There are still signs that the token could hit the $100,000 jackpot by the end of 2024. The only question is whether to first maintain the safety net of $38,000 or break that base for a lower decline.
ETH’s condition is no better either. The token, which once exceeded $2,500, is currently listed at $2,379. We fought hard to stay above our goals. It eventually succumbed to continued volatility and fell to $2,400. The current value fell by 3.99% in the last 24 hours and by 6.105% in the last 7 days.
Spot Bitcoin ETFs pave the way for investors and traders to legally hold the product. In fact, this paved the way for the Ether ETF and XRP ETF. Both products are expected to receive attention in the future. The asset manager has not yet announced the application, but the community is optimistic about its launch.
Meanwhile, cryptocurrency enthusiasts are looking forward to the Bitcoin halving, assuming that it will eventually fuel Bitcoin’s rise. Bitcoin halving is tentatively scheduled to occur in the middle of this year.
Cryptocurrency enthusiasts are also looking forward to mass adoption of BTC across the world. Not all governments are necessarily excited about this, but excitement is nonetheless evident within the digital ecosystem.