Bitcoin slipped 0.04% on Tuesday afternoon in Asia but remained above US$30,000. Ether also dropped, while other top 10 non-stablecoin cryptocurrencies traded mixed after a week of gains led by crypto-related exchange-traded fund (ETF) applications in the U.S..
Bitcoin, Ether dip in 24 hours, but post weekly gains
Bitcoin dropped 0.04% to US$30,402 in 24 hours to 4 p.m. in Hong Kong, but strengthened 13.32% in the past seven days, according to CoinMarketCap data. Prices of the world’s biggest cryptocurrency by market capitalization have been on the rise since a number of traditional institutional players showed interest in introducing Bitcoin exchange-traded-fund (ETF), indicating its mainstream acceptance.
“Retail investors have been steadily accumulating Bitcoin over the years, and a significant portion of the supply remains untouched by long-term holders,” Rajagopal Menon, Vice President of WazirX, India’s largest crypto exchange by volume, told Forkast in an emailed response.
“With the influx of institutional investors and the consequent surge in Bitcoin demand, the limited supply and illiquid nature of Bitcoin are poised to propel its price higher,” Menon added.
Ether, world’s second-largest crypto exchange, fell 0.97% to US$1,875 in 24 hours, but has risen 8.41% on the week.
Cardano’s ADA token was the biggest loser among top 10 cryptos, dropping 2.63% to US$0.2828, which brought its weekly gains to 9.11%. Solana was the second biggest loser in the top 10, falling 1.26% to US$16.73 in the last 24 hours, but has gained 4.76% in the past seven days.
The U.S. SEC filed lawsuits against crypto exchanges Binance.US and Coinbase in the week of June 5. In doing so, it named several altcoins as financial securities, including Cardano, Solana, Polygon and BNB.
“Bitcoin has surged to a new yearly high, leaving the altcoin market trailing, partly due to the U.S. SEC declaring them securities. This shift in liquidity dynamics, where funds seem to be flowing from altcoins to Bitcoin… indicates the potential for Bitcoin to sustain its upward trajectory, potentially at the expense of altcoins,” Menon of WazirX added.
Bitcoin Cash, the spin-off of the world’s largest cryptocurrency, gained over 108% in the last seven days as investors hope the Bitcoin-based altcoin receives the same categorization as commodities by U.S. regulators. Bitcoin Cash rose 13.9% to US$220.68 in the 24 hours to 5.10 p.m. in Hong Kong on Tuesday, according to CoinMarketCap data.
“Bitcoin has been outpacing Wall Street recently. It is attracting an increase in exposure and interest from institutional investors, which typically include pension funds, hedge funds and sovereign wealth funds,” Nigel Green, chief executive of financial advisory firm deVere Group, said in an emailed statement on Monday. “Investors should ‘follow the big money’ as institutional funds flow into Bitcoin,” Green added.
Crypto exchange Bybit said on Monday it has received a license to operate a crypto exchange and provide custody services in Cyprus. The license from the regulatory authorities in Cyprus would allow the company to provide services including trading between crypto and fiat currency pairs, financial services related to crypto assets, and custody solutions tailored to clients in Cyprus and E.U. member states.
Seychelles-based crypto exchange Bitget said on Monday it has launched a local website and a fiat gateway in Turkey, enabling local users to trade on Bitget using the Turkish Lira (TRY). Fiat Gateway serves as a bridge connecting traditional financial systems and digital assets, enabling transactions between fiat currencies like USD, EUR, or TRY, and cryptocurrencies such as Bitcoin and Ethereum.
The global crypto market capitalization fell 0.09% to US$1.18 trillion, while total crypto market volume rose 11.12% to US$35.63 billion.