Bitcoin remains below the 50-day moving average trend line one week after the US securities watchdog enacted a sweeping approval of spot-bitcoin exchange-traded funds.
Despite this new class of bitcoin-backed funds generating more than $10 billion in volumes in the first three days of trading alone, they have since failed to generate momentum in the spot markets.
Week on week, the world’s largest cryptocurrency is down more than 8% to $42,812 at the time of writing.
The 50-day MA is a composite of bitcoin’s last 50 closing prices and can act as a barrier to upward price action, as traders often use it as a sell-side signal. This appears to be happening in the post-ETF bitcoin environment.
Bitcoin’s sluggish performance comes as a surprise to market participants who were anticipating an instant post-ETF price surge but were instead faced with a ‘sell-the-news’ situation.
Binance’s order book shows a large quantity of sell orders at $43,000, which could potentially act as another barrier to bitcoin short-term price recovery.
These ETF approvals have also failed to attract a new bitcoin fan in JPMorgan Chase & Co (NYSE:NYSE:JPM) boss Jamie Dimon.
In his latest CNBC interview, Dimon reiterated his opinion of bitcoin’s uselessness, saying it “does nothing”.
“This is the last time I’m talking about this with CNBC, so help me God,” Dimon said, although “blockchain is real. It’s a technology. We use it. It’s going to move money, it’s going to move data. It’s efficient”.
“I don’t care. So just please stop talking about this s***,” he said when asked about BlackRock’s pivot into the bitcoin markets.
Bitcoin’s post-ETF-approval performance has underwhelmed – Source: tradingview.com
Ethereum (ETH), which saw substantial gains on bitcoin this time last week, has since cooled off, with the ETH/BTC pair falling 1.4% on Wednesday before trading flat in today’s Asia trading window.
Ethereum also dipped more than 2% against the US dollar. At the time of writing, the ETH/USD pair was swapping for $2,539.
In the broader blue-chip altcoin space, Cardano (ADA) and Polkadot (DOT) remain over 10% lower week on week, followed by Avalanche (AVAX)’s 7.5% worth of losses and Ripple (XRP)’s 4.4% dip.
Solana (SOL) and BNB have fared comparatively well, with both gaining less than one percent in the past seven days.
Global cryptocurrency market capitalisation currently stands at $1.69 trillion, with bitcoin dominance at 51.2%.
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