Prices of Bitcoin and other cryptocurrencies were mostly higher on Tuesday. However, there are signs that investor interest is turning away from Bitcoin and towards other cryptocurrencies following the approval of exchange-traded funds linked to spot trading of the largest cryptocurrency.
Bitcoin rose 0.5% in the past 24 hours to $42,874. The largest cryptocurrency has largely settled back into its $42,000 to $44,000 trading range that was established before the Securities and Exchange Commission approved its first bitcoin ETFs last week.
Prices of Bitcoin and other cryptocurrencies were mostly higher on Tuesday. However, there are signs that investor interest is turning away
Bitcoin
And towards other digital currencies after the approval of exchange-traded funds associated with spot trading of the largest cryptocurrency.
Bitcoin
It rose 0.5% in the past 24 hours to $42,874. The largest cryptocurrency has largely settled back into its $42,000 to $44,000 trading range that was established before the SEC approved its first bitcoin ETFs last week. The SEC approval briefly sent Bitcoin above $49,000.
“Investors took profits from positions initiated at lower BTC price levels and began reallocating capital to altcoins, as evidenced by the decline in dominance over the past week. “This pattern is… “Common and does not indicate a failure to launch the ETF.”
Net inflows into Bitcoin ETFs in the first days of trading were about $800 million, according to Greco. The market focus will now likely shift to the potential approval of ETFs tied to other cryptocurrencies such as Ethereum, the second largest cryptocurrency.
Meanwhile, Bitcoin’s focus will now be on the expected “halving” in April. Roughly every four years, the Bitcoin mining reward for solving cryptographic puzzles that validate transactions is halved — a process that helps limit the supply of tokens and potentially push up prices.
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Beyond Bitcoin,
ether
It rose 0.5% to $2,528. Among the smaller cryptocurrencies,
Solana
However, it rose by 2.2%
Cardano
Decreased by 0.7%.
Dogecoin
It rose by 0.4%.
Write to Adam Clark at adam.clark@barrons.com