Bitcoin (BTC) experienced increased volatility, with a 6.5% rally followed by a 4.5% decline, while Ethereum (ETH) also dropped nearly 5%.
Key Takeaways
- Bitcoin (BTC) has witnessed increased volatility recently, with a 6.5% rally followed by a 4.5% decline in a short period.
- Ethereum (ETH) also faced a 5% drop, closing at $1,961 on Thursday.
- The BTC/USDT pair showed upward movement during Asia’s trading hours, reaching $36,380 at the time of reporting.
- The cryptocurrency market’s current volatility is linked to ongoing news surrounding spot bitcoin exchange-traded funds (ETFs).
Bitcoin’s Volatility Soars
Bitcoin experiences heightened volatility, with a 6.5% surge followed by a 4.5% decline within a short timeframe. Ethereum sees a 5% drop, closing at $1,961 during recent trading.
The BTC/USDT pair shows upward momentum during Asia’s trading hours, trading at $36,380 at the time of the report.
Bitcoin’s recent volatility is linked to ongoing news about spot bitcoin exchange-traded funds (ETFs), with BlackRock Inc. joining efforts to introduce these products.
Bitcoin goes volatile; are EFTs already priced into the market? https://t.co/8tzwJzg1RU
— Proactive (@proactive_UK) November 17, 2023
Strong Performance in 2023
Bitcoin outperforms many risk assets, surging by over 120% year-to-date. Research by Fineqia reveals that exchange-traded products (ETPs) with digital assets as collateral have grown by 91% in total assets under management (AUM) this year, outpacing the growth of digital assets themselves.
Bitcoin dominates these ETPs, comprising around three-quarters of them, despite representing half of the global cryptocurrency market.
Some experts suggest that the potential benefits of a spot bitcoin ETF may already be factored into current market prices.
To Conclude
Bitcoin was trading at $36,380 at the time of the report. This volatility is attributed to ongoing news about spot bitcoin exchange-traded funds (ETFs), with BlackRock Inc. joining efforts to introduce spot bitcoin products on mainstream stock exchanges, resulting in substantial gains for Bitcoin, which is up over 120% year-to-date.
