The cryptocurrency market continues to experience a bearish trend, with both altcoins and the leading cryptocurrency, Ethereum (ETH), facing losses. This downturn comes two weeks after the United States Securities and Exchange Commission (SEC) approved a spot Bitcoin (BTC) ETF.
On-chain data indicates that the prices of several cryptocurrency assets have reached monthly lows, a significant departure from the price gains observed towards the end of the previous year.
This recent sell-off is evident in both Bitcoin and numerous altcoins, as daily trading volumes in the cryptocurrency market have taken a hit. Over the past 24 hours, daily trading volumes amounted to $46.27 billion, representing a 6.61% decrease compared to the previous day. Consequently, the total cryptocurrency market capitalization now stands at $1.56 trillion.
As asset prices decline, the volumes in the decentralized finance (DeFi) sector have also seen a substantial drop, hovering at $3.6 billion. This constitutes just 7% of the entire cryptocurrency market, indicating decreased activity and a prevalence of selling pressure.
Ethereum Leads The Pack
Ethereum has experienced the most significant loss among the top 20 ranked altcoins over the past seven days, with its decline now in double digits.
As of the time of writing, ETH has fallen by 10.7% within the week and is currently trading at $2,212, representing a slight 0.4% dip in the past 24 hours.
Similar to most assets, Ethereum saw a surge in momentum during the fourth quarter of 2023, following a sluggish start to the year following the 2022 bear market. Throughout the year, this prominent altcoin recorded substantial gains, posting a 90% profit, thanks to institutional investments and impressive figures in the decentralized finance (DeFi) sector.
However, the gains achieved in December have been erased due to the recent market correction. Bearish sentiments are now anticipating slightly lower prices in the coming weeks. Solana (SOL) and Ripple (XRP) also suffered losses, with decreases of 6.69% and 6.4% in the past week, bringing their prices to $87.83 and $0.51, respectively.
Similar to ETH, SOL’s substantial gains in December have been wiped out, resulting in a monthly decline of 23.22%. XRP has experienced monthly losses of 17.63%. Cardano (ADA) and Avalanche (AVAX) have also seen declines, dropping by 5.54% and 7.5% in the past week, and a more substantial 22% and 15.29% in the last 30 days, respectively.
Bitcoin Is Still in The Sell-off Mix
As the altcoin market continues to experience losses, Bitcoin’s correction following the green light for spot ETFs has sparked discussions among various commentators. Some have characterized this as a typical “sell-the-news” occurrence.
In the months leading up to the ETF approval, there was a noticeable increase in institutional investor interest, driving the asset’s price to levels not seen in quite some time.
Analysts had then foreseen a substantial price surge post-approval, as it presented a fresh opportunity for investors to bolster their holdings in the leading cryptocurrency.
Matrixport initially projected a price target of $50,000 for Bitcoin in December. However, given the recent price correction, a new report has emerged, suggesting a potential dip to $36,739 before a subsequent rebound.
