Blue chip cryptocurrency markets are witnessing a decline on Wednesday, possibly due to leverage liquidation triggered by fear, uncertainty, and doubt (FUD) surrounding the expected approval of spot Bitcoin exchange-traded funds (ETFs) in the US. This, coupled with macroeconomic headwinds, including a decline in US stocks and rising US yields and the US dollar, has contributed to the downward trend.
Bitcoin (BTC) has dropped below $43,000, marking a nearly 5% decrease in the past 24 hours. Just a day earlier, it reached a 21-month high, nearing $46,000. Ether (ETH) has also experienced a decline of around 6% in the past day, falling to the low $2,200s. Other major cryptocurrencies including Solana (SOL), XRP (XRP), and Cardano (ADA) have also seen losses of approximately 7%, 6%, and 9% respectively. However, Binance Coin (BNB) has managed to gain over 2% within the same timeframe.
As the major cryptocurrencies retreat from their multi-quarter highs at the beginning of 2024, traders seeking quick profits are turning towards the highly volatile and illiquid low-cap shitcoin/meme coin markets.
