Bitcoin, Ethereum, Dogecoin Drop As Spot ETF Euphoria Subsides: Analytics Firm Foresees Shift In Crypto Market Sentiment From BTC To ETH

Major cryptocurrencies dropped on Sunday following the excitement over the approval of Bitcoin exchange-traded funds (ETFs) earlier this week.

What Happened: Bitcoin soared to $46,000 earlier on Friday and spiked to a two-year peak of $49,000 on Thursday as Bitcoin ETFs commenced trading in the U.S. However, the soaring prices proved to be short-lived.

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The global cryptocurrency market cap now stands at $1.77  trillion, showing a 1.24% increase in the past 24 hours.

Stocks ended the week on a positive note, with mixed performance among the major indexes on the closing day. The S&P 500 edged up by 0.08% to finish at 4,783.83. The tech-heavy Nasdaq Composite closed just above flat, with an increase of 0.02% to settle at 14,972.76.

The US stock market will be closed for trading on Monday in observance of Martin Luther King Day.

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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe said that the total market capitalization for crypto has reached the target of $1.8 trillion. "Time to remain calm on the total market capitalization, Bitcoin to consolidate, and Altcoins to flourish. Any dip of 20% is an opportunity to get in, in my opinion."

According to pseudonymous analyst Crypto Tony, Bitcoin has hit the $47,000 mark, which he had previously identified as a top due to resistance points. The analyst has taken profits on his long position at $47,000 and is currently observing the market for the next move. Crypto Tony has set his stop loss at $41,000 for his long position.

Ethereum is poised to become the next cryptocurrency asset to be listed on a spot market ETF, according to an analysis by IntoTheBlock's Lucas Outumuro.

Outumuro notes that Ethereum has shown significant outperformance compared to Bitcoin in the past few days, especially following the false reports of approval for spot-based BTC ETFs. The head of research at the firm indicates that Ethereum's sudden surge indicates that traders are anticipating the approval of spot market Ethereum ETF applications. 

"Ether has outperformed Bitcoin by over 10% since the initial fake approval of the spot ETF came out on Tuesday. With Blackrock and several other entities having pending applications for Ethereum spot ETF applications, the market appears to be giving it high odds they will pass." 

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