Ethereum Faces Biggest Drop in Three Months Despite Launch of Spot ETFs

Despite the launch of spot Ethereum ETF trading on stock exchanges this week, the second-largest cryptocurrency saw a record daily price decline of 7% on Thursday, its biggest drop in three months. Ethereum is currently priced at $3,182.

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In turn, Bitcoin fell in price by 2% to $64,000. According to Coinglass, over the past 12 hours the market for digital assets has dropped by more than $250 million, and in one day its losses amounted to almost $300 million.

As noted by Reuters, shares of many companies around the world have fallen in recent weeks, especially securities of technology companies and risk assets, the ups and downs of which often coincide with the movement of cryptocurrencies.

According to Bloomberg, the decline in the cryptocurrency market coincided with a drop in the US stock market on Wednesday, which the agency called the worst day since 2022, attributing the development to a decline in investor enthusiasm for the promise of artificial intelligence technologies and their ability to recoup investments.

The tech-heavy NASDAQ index reportedly fell 3.6% to 17,342, its lowest level since 2022. The American stock index NASDAQ 100, which includes shares of the 100 most valuable companies on the exchange, lost more than $1 trillion in one day, and the total capitalization of the seven leading technology companies decreased by $760 billion in just one day.

Following in their footsteps, shares of cryptocurrency-related companies such as mining firms fell on Thursday. The Coinbase exchange lost 2.3% of its value, while Riot Platforms and Marathon Digital lost 3.4–4%.