On Wednesday, Bitcoin (BTC) fell 3% to hover at $93,700, marking yet another steep loss. The decline occurs even though Bitcoin Exchange-Traded Funds (ETFs) are attracting a lot of investor interest.
Bitcoin (BTC) price dropped on Wednesday, hovering around $93,700 after incurring another steep loss despite Bitcoin Exchange-Traded Funds (ETFs) continuing to pique investor interest.
As reported by CoinGecko, BTC fell by 3% on Wednesday, while altcoin markets showed mixed performance amid the broader market sell-off. Exchange tokens, such as Bitget Token (BGB) and Binance Coin (BNB), demonstrated resilience due to increased activity on the Bitget and Binance platforms, respectively. XRP also remained stable at $2.3 following Ripple’s partnership with Chainlink to enhance cross-border payment solutions and DeFi adoption by integrating decentralized oracles.
On the other hand, Litecoin (LTC) faced declines, dropping by 8% and trading at $100 after failing to sustain gains near $115 earlier in the week. This decline was attributed to weak on-chain activity, despite the narrative of the upcoming halving continuing to bolster investor optimism. Litecoin encountered resistance at $115, and maintaining support at $100 was seen as crucial to preventing further declines toward $85.
Avalanche (AVAX) also faced a 7% drop, trading at $37 following a failed breakout attempt above $40. The token remained vulnerable as broader market corrections weighed on altcoin performance.
Memecoins faced heavy losses amid the market sell-off, with traders reducing risk, as reported by CoinGecko. The sector’s market capitalization dropped by 14.7%, shedding $16 billion and settling at $110 billion. High-profile tokens, such as Bonk (BONK) and ai16z, led the declines with losses of 9.2% and 12%, respectively. Shiba Inu (SHIB) and Pepe (PEPE) also saw declines, falling by 4.6% and 5.8%. Additionally, despite prior stability, Pudgy Penguins (PENGU) encountered a drop of 10.3%. This sell-off was linked to traders shifting away from high-risk assets amid concerns over tighter monetary policy.
Meanwhile, Bitfinex Derivatives announced its relocation to El Salvador, capitalizing on the country’s favorable crypto regulations. After acquiring a Digital Asset Service Provider (DASP) license, Bitfinex was able to expand its product offerings in a jurisdiction where Bitcoin is recognized as legal tender. Users accessing Bitfinex derivatives services would be subject to updated terms of service under the newly formed Bitfinex Derivatives El Salvador S.A. de C.V. This development highlighted El Salvador's emerging role as a hub for crypto innovation.
In South Korea, the Financial Services Commission (FSC) planned to lift its ban on institutional cryptocurrency trading. This policy shift would allow local institutions, starting with non-profit organizations, to enter crypto markets. The FSC was also working with the Digital Asset Committee to establish clear regulatory frameworks for stablecoins, token listings, and crypto exchanges. These reforms aligned with President Yoon Suk-yeol’s aspiration to foster a robust cryptocurrency industry and position South Korea at the forefront of digital asset development.
Finally, Fidelity Digital Assets predicted that nation-states, central banks, and sovereign wealth funds building up Bitcoin reserves would be the primary drivers propelling the cryptocurrency to explode by 2025. According to the company’s “2025 Look Ahead” report, Bhutan and El Salvador serve as prime examples of successful Bitcoin integration. Fidelity also hinted at the possibility of countries secretly stockpiling Bitcoin to leverage its long-term value. In addition to nation-state adoption, the report anticipated substantial growth in structured digital asset products and tokenization.
