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The Cryptocurrency Market Sees Significant Losses Across Major Coins
The cryptocurrency market experienced a downturn on Friday, with notable coins like Bitcoin, Ethereum, and Solana all registering losses during morning trading. This decrease in value may be an indication of heightened volatility in anticipation of the upcoming Bitcoin halving event, leading traders to carefully assess their pricing strategies. Historically, movements in the price of Bitcoin have had a cascading effect on the broader digital asset market.
Bitcoin’s Price Sees a Decline
Bitcoin (BTC), the dominant cryptocurrency by market capitalization, witnessed a drop of over 4% within the past 24 hours, settling at approximately $63,400, as reported by CoinGecko. Following its recent streak of setting record-high price levels, the impending halving of Bitcoin has contributed to increased market volatility. Investors are closely monitoring whether the event will lead to a price correction or propel Bitcoin to new all-time highs.
On a positive note, AllianceBernstein, a global investment firm, predicted that Bitcoin could reach $90,000 by the conclusion of 2024. Moreover, the approval of Bitcoin exchange-traded funds (ETFs) earlier this year has injected significant liquidity into the market, with these ETFs now accounting for a substantial portion of daily BTC spot market volume on centralized exchanges globally.
Ethereum Faces Similar Market Pressure
Concurrently, Ethereum has suffered a dip of nearly 6% over the past day, currently priced around $3,320. The anticipation surrounding potential approval of Ethereum spot ETFs by the U.S. Securities Exchange Commission (SEC) is driving interest from firms like BlackRock and Grayscale, despite the looming regulatory uncertainties. Recent revelations of an ongoing investigation by a state authority into the Ethereum Foundation have tempered optimism regarding an Ethereum ETF approval.
“On any one of these crypto tokens, it’s about the facts and circumstances as to whether the investing public is anticipating a profit based on the efforts of others,” SEC chair Gary Gensler commented on the matter.
Solana Experiences Significant Price Decrease
Solana, a network that has recently attracted attention due to elevated meme coin trading activities, faced a sharper decline with an 8% drop in value over the last 24 hours, currently priced at approximately $171. Despite reaching a milestone exceeding $200, Solana has encountered congestion issues attributed to high demand for meme coins. With the recent cooldown in frenzy surrounding meme coins, Solana may see relief from network congestion in the near future.
Notable meme coins on the Solana network, including BONK, Dogwifhat (WIF), and Slerf (SLERF), have experienced corresponding declines in value, reflecting the broader market trend.
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