The price of the Bitcoin cryptocurrency fell below $29,000 for the first time in more than a month as the recovery that followed a group of companies announcing their intention to launch exchange-traded funds for the currency declined, as did expectations about regulatory moves in favor of the crypto sector.
The largest digital asset by market value slid by 4.2% to $28,865, the lowest level since June 21, despite Bitcoin's overall rise of about 75% since the beginning of the current year. Most other cryptocurrencies were also lower on Monday, with XRP (XRP) slipping 7% and Solana losing 8%.
After Bitcoin's sharp rally fueled by the announcement of the new exchange-traded funds, the cryptocurrency has been hovering around the roughly $30,000 range for more than a month, said Spencer Hallarn, derivatives trader at cryptocurrency investment firm GSR. The market is now awaiting additional information about the emergence of a large number of regulatory filings for this purpose.
Cryptocurrencies are losing ground
The recent jump in bitcoin coincided with a batch of filings requesting the launch of US exchange-traded funds for the cryptocurrency, with Wall Street giant BlackRock pioneering the move. XRP has nearly doubled in value after a federal judge ruled nearly two weeks ago that the cryptocurrency does not qualify as a security when offered to the general public via exchanges.
Hallarn added, “Following the (XRP) ruling, the enthusiasm associated with altcoins and the uptick in stock exchange listings led to a reversal of the compass of capital, and instead of focusing on the major cryptocurrencies over the past few months, this contributed to a loss of price momentum.”
Dogecoin was the only exception among the cryptocurrencies with the largest market value, as it advanced by about 7.8% after American businessman Elon Musk changed the Twitter logo, and replaced the site's famous blue bird with a modern design (x). Musk also added the Dogecoin ticker logo to his profile, sparking speculation that the meme will play a bigger role in the company after its name change.
Worldcoin is the newest entrant in the crypto world
On the other hand, Worldcoin, the cryptocurrency co-founded by Sam Altman, CEO of OpenAI, rebounded on its first trading day, as investors infatuated with artificial intelligence flocked to it. The coin jumped to $3.58 from an initial price of $1.70, according to data compiled by CoinMarketCap.
Why are major companies racing to launch listed Bitcoin funds?
It is worth noting that Worldcoin is a cryptocurrency launched by Altman that works with electronic iris scanning technology using a small device called an orb that scans the fingerprints of people’s eyes in order to create a unique digital identity. This identity, called the World ID, gives its holder proof of identity in the World Coin world.
