Bitcoin and other cryptocurrencies were mixed on Wednesday, as traders assessed the recent rally and waited for more catalysts before the expected regulatory approval of exchange-traded funds (ETFs) that hold Bitcoin.
The biggest cryptocurrency traded up 0.9% over the past 24 hours to $43,070. Bitcoin has mostly stayed within a range of $41,000 to $44,000 since the beginning of December, but has more than doubled so far in 2021.
The Bitcoin rally has been driven by expectations that the Securities and Exchange Commission (SEC) will likely grant approval to ETFs that buy crypto tokens from the spot market. The first set of approvals could be expected as early as January. The SEC has been having talks this month with the asset managers hoping to launch the Bitcoin ETFs.
“Crypto is a very cyclical industry and it thrives on market momentum,” said Brandon Zemp, head of blockchain consultancy BlockHash. “Throw in ETFs, Bitcoin’s halving, a presidential election, crypto legislation and U.S. dollar inflation, and you have a highly explosive 2024.”
Ethereum, the second largest cryptocurrency, was up 3.7% at $2,327. Smaller cryptocurrencies were largely flat, with Cardano trading around the same price and Solana down 4.1%. Dogecoin was up 0.3%.
The crypto market is awaiting further news on ETFs and other catalysts to drive the prices higher. Write to Adam Clark at adam.clark@barrons.com for more information.
