Bitcoin ETF Approval Drives Market Divergence, $10 Investment Returns Vary Widely
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Significant Market Divergence: SoSoValue's analysis reveals that a $10 investment made in early 2024 yielded $28 in some crypto sectors while dwindling to just $1.20 in others, highlighting the profound split and the impact of selective capital flows in the market.
- ETF's Far-Reaching Impact: The approval of spot Bitcoin ETFs in January 2024 is identified as a key catalyst, which, while creating a compliance loop, has concentrated institutional funds into regulated products, significantly reducing inflows to other crypto assets.
- Winners and Losers: Centralized finance (CeFi) sectors, such as Binance's BNB, surged over 180%, while areas reliant on venture capital and retail speculation, like Layer-2 networks and GameFi, plummeted by 87% and 85% respectively, underscoring the market's dependency on compliant capital.
- Uncertain Market Outlook: Bitcoin's decline from its October peak to current levels reflects natural market cycles and the absence of a well-funded altcoin ecosystem, leaving the future of the market shrouded in greater uncertainty.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
