Though the crypto price drop has continued for over two days, signals have gradually improved with incoming news of an Ethereum ETF in the United States.
Traders and investors have seen a crypto price drop in the last few days. The dip in the crypto market could be due to several reasons. On a positive note, the Securities and Exchange Commission (SEC) could likely approve an Ethereum ETF soon.
The news of the ETF has triggered a sudden rise in ETH. The token surged by over 11% to cross $1650. The rise of Ethereum has offset some of the losses by other crypto tokens. As a result, the crypto market cap has received a boost for its recovery.
Analysts believe multiple reasons might be behind the dip in crypto. Some stated how a major corporation could have sold a chunk of its Bitcoin holdings. Others say the flat market was the reason for investors liquidating their holdings.
The high-interest rates worldwide could also be the reason for the sell-offs, claim analysts. Meanwhile, reports also suggested traders selling Bitcoin to invest in Ethereum.
The momentum in ETH could, thus, last for a while. In the meantime, BTC’s dip could also be a golden opportunity for long-term investors. The current price action could see buyers forming support just below $25000.
BTC/USD 1D price chart
Bitcoin is currently trading at around $26400 on August 18, 2023, with BTC/USD trading lower by 7.4% in the last 24 hours. BTC/USD is trading lower than its 20-day EMA (29,069.43) as BTC’s 24-hour volume increased to around $30 billion. Bitcoin has seen around 59.59% returns on a year-to-date basis.