Some of the top cryptocurrencies have had a tumultuous 24 hours. Bitcoin (CRYPTO: BTC) peaked at $68,800 on Tuesday morning before falling to 61,400 five hours later. At 11 a.m. Wednesday, the price is $66,500 and looks to have steadied.
As expected, Ethereum (CRYPTO: ETH) peaked at $3,805 early Tuesday, fell to $3,360, and is sitting at $3,800. Dogecoin (CRYPTO: DOGE) fell from $0.188 to $0.132 but rose to $0.162.
After its massive run-up, traders took profits, which drove Bitcoin's precipitous collapse on Tuesday. CoinDesk stated that Bitcoin miners sold tokens to lock in profits. Bitcoin miners have leveraged exposure because they hold the crypto for a long time. That's only useful if they make money.
Blockchain reveals crypto market inner workings. The blockchain can reveal who is sending Bitcoin to exchanges or selling decentralized. Information may be shared fast.
Bitcoin ETFs continue to attract funds—the BlackRock iShares Bitcoin ETF (NASDAQ: IBIT) raised $778 million on Tuesday. That fund is one of the world's largest Bitcoin holders with 183,000 Bitcoin. Bitcoin leads the crypto market, thus other tokens follow as money flows into ETFs and drives up its price.
But that may be Ethereum and Dogecoin's best news. Ethereum and Dogecoin may be the next cryptocurrencies to be ETFs approved after proving investor interest. They have two of the largest crypto market valuations and are popular with investors.
The SEC's reluctance to approve such funds is holding the industry back. Several court cases may clarify what is and isn't a security. Those cases may approve more crypto ETFs.
Over the past six months, speculation and fund inflows into coins and ETFs have drove cryptocurrency prices up almost 100%. Investors should be wary because both trends can reverse swiftly.
In 2021, values rose, but in 2022, they fell. Bitcoin, Ethereum, and Dogecoin prices have risen similarly to growth stocks, and their valuations are becoming unsustainable. Crypto bull run may continue, but investors should expect a correction. History suggests one is coming.
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