Bitcoin stalls near $95.5K, SEC delays altcoin ETF decisions leading to declines in XRP, DOGE, AVAX; Bitcoin ETFs see $178 million in inflows; SEC ends PayPal PYUSD investigation without action; Mark Carney’s re-election may impact crypto regulations in Canada.
In a somewhat tumultuous day for the cryptocurrency market, Bitcoin’s price has once again found itself hovering around $95,500, only to retract slightly to $94,200. This dip in Bitcoin has been accompanied by a general decline, with the overall cryptocurrency market capitalization slipping by 2.6%, now resting above the $3.06 trillion mark. The downturn has been largely influenced by the US SEC’s decision to postpone its judgement on altcoin Exchange Traded Funds (ETFs) until June 2025, resulting in notable price drops for several altcoins including XRP, DOGE, and AVAX, which each experienced losses exceeding 3%.
As Bitcoin continues its search for stability, it faced resistance near the $95,500 level for the sixth consecutive day. The upward pressure appears to be sustained, thanks in part to rising trading volumes as investors pivot away from top altcoins in response to the SEC’s announcement. Some observers suggest that the interest in Bitcoin reflects a strategic move by corporate investors seeking to navigate the uncertainties posed by the ongoing US-China trade tensions, which have left many US firms unsure about their earnings prospects.
In terms of inflows, Bitcoin ETFs recorded a solid performance on Tuesday, attracting an impressive $178 million over the previous week. This success can be largely attributed to BlackRock, which contributed a substantial $216 million in deposits while others like Ark Invest and Fidelity saw outflows. The volatility in traditional stock markets seems to be boosting Bitcoin’s appeal as a hedge, enabling it to outperform many altcoins this week.
Speaking of altcoins, XRP, DOGE, and Avalanche have all taken a hit following the SEC’s ETF verdict delay. XRP, which had soared to $2.30 recently, has since dipped 4.4% to $2.18. Meanwhile, DOGE fell by 3.5% to $0.1714 but has managed to retain a weekly gain of 7%. Avalanche, too, struggled, declining 3.9% and holding just above the $18 price range. This synchronized decline highlights the fragile state of sentiment in the altcoin market at this time.
In other crypto news, the SEC has closed its investigation into PayPal’s PYUSD stablecoin without further action. The investigation that initiated with a November 2023 subpoena concluded amidst PayPal’s efforts to enhance PYUSD adoption, including its integration into Solana’s blockchain for improved transaction efficiency.
Additionally, Mark Carney’s recent re-election as Canada’s Prime Minister also stirred some skepticism regarding potential crypto regulations. Carney’s administration is expected to take a more cautious approach to cryptocurrency, potentially stalling progress advocated by former opposition leader Pierre Poilievre, who had shown more enthusiasm for digital assets.
The overall atmosphere of uncertainty continues to pervade the market, especially given the ongoing discussions about regulation and the SEC’s recent decisions. Investors are advised to proceed with caution, as the cryptocurrency landscape remains highly volatile and unpredictable, with governments and regulatory bodies weighing on market movements significantly.
