Crypto Markets Tumble: Ethereum, XRP Drop 5% Amid ETF Frenzy

Cryptocurrency markets experienced a mixed day, with some major tokens posting significant losses while others surged amid a frenzy of exchange-traded fund (ETF) activity. Ethereum (ETH) and XRP both dropped by around 5% in the last 24 hours, continuing a prolonged sell-off that has affected the broader cryptocurrency market.

Bitcoin (BTC), the world's largest cryptocurrency, traded between USD 82,500 and USD 89,000 during US trading hours but made a slight recovery in the early Asian hours. At the time of publishing, BTC's price stood at around USD 86,250. Other major tokens, such as BNB, ADA, and Dogecoin, also experienced a slump of around 4%, with nearly USD 600 million worth of coins being liquidated since yesterday.

In contrast to the broader market downturn, APT (Aptos) and LTC (Litecoin) both rose by over 10% in value. APT's surge was attributed to the registration of the 'BITWISE APTOS ETF' in Delaware, USA. While Litecoin has shown promising results, traders remain cautious about its long-term trajectory.

Ben Yorke, the WOO VP of Ecosystem, noted that Bitcoin clones, despite their promising results, may not receive long-term commitment from traders due to a lack of organic demand, yield, or utility beyond ETF approval speculation. He also suggested that these coins could be sold soon as investors focus on more topical trends amidst future ETF rumors.

The losses in the cryptocurrency market have mirrored the slump in US equities, largely due to NVIDIA's failed attempt to impress investors. Market watchers are now awaiting macroeconomic cues before reinvesting in Bitcoin, suggesting that the current downturn may continue.