Following several days of consistent gains, Bitcoin (BTC) has witnessed a significant correction in the last 24 hours, with the cryptocurrency momentarily falling below $60,000.
After hitting an all-time high of over $66,000 this week, some cryptocurrency market observers wonder whether Bitcoin’s upward trajectory will be sustained with over $45 billion exiting the digital currency and trading volume declining by 20.84% as BTC’s price dropped by $2,700 in 24 hours.
Currently, the flagship digital cryptocurrency is trading above $60,702, down 4.17% in the last 24 hours and 1.14% over the previous seven days, according to CoinMarketCap.com.
With a market worth of $1.14 trillion and a 45.34% market share, one prominent price prediction model estimates that Bitcoin will reach six figures by the end of 2021. Still, the cryptocurrency’s legendary volatility also suggests that it will experience a significant correction at some point.
However, certified technical analyst @CryptoBirb considers that a price decline comparable to the one that happened after the all-time high in mid-April is unlikely.
Bitcoin futures ETF
The first-ever Bitcoin futures exchange-traded fund (ETF), which went live in the United States on Tuesday, has been the primary center of attention in the cryptocurrency world for the last week or so.
The excitement around the release of such a long-awaited product fueled a tremendous price increase for the digital asset, which broke beyond its April all-time high and recorded a new one a day later. However, BTC was unable to hold its position, and the bears began to force it downwards progressively.
Following the debut of the world’s first Bitcoin futures ETF on the New York Stock Exchange this week, comparisons between the cryptocurrency and gold have become even more interesting.
The decision was a watershed moment for the cryptocurrency market, as it aided in propelling Bitcoin to new highs by allowing it to be accessed by hitherto untouched institutional investors.
Furthermore, a comparable price increase was seen after the NYSE filed the first gold ETF in 2004, when its market capitalization was nearly equal to that of Bitcoin today, as noted by the CEO of Crypto Quant Ki-Young Ju.
Notably, investors’ interest in gold ETFs may have waned by more than 7% because of the rise of gold alternatives like Bitcoin, which might make it a viable substitute to conventional assets like gold and silver as a store of value.
Global crypto market
The total market capitalization of all cryptocurrencies is $2.52 trillion, representing a 3.13% fall from the previous day.
Whereas the overall market volume during the previous 24 hours has decreased by 21.70 percent to $96.58 billion. By comparison, the volume in DeFi is now $13.78 billion, or 14.2% of the overall 24-hour volume, while the volume in all stable currencies is $76.13 billion, or 78.83%.