Approval of new ETFs in US causing fluctuations in Bitcoin's value, leading to speculation

From Investing.com: 2024-04-04 04:18:22

The approval of new exchange-traded funds in the US has caused fluctuations in Bitcoin’s value, leading to speculation in the cryptocurrency market. This has boosted other markets as well, but some experts question the sustainability of this trading volume, particularly in meme coins. Bitcoin’s gains are also affecting larger alternatives and riskier plays.

As US dollar liquidity continues to rise, investors are looking beyond Bitcoin to the rest of the blockchain ecosystem, potentially overlooking the distinction between valuable and less-sound assets. Julius Baer’s digital asset analyst warns that the increase in trading volume may not be underpinned by a solid foundation, citing the parasitic nature of meme coins.

Read more at Investing.com: Memecoins have had a “merely parasitic upside” By Investing.com