This Wednesday, cryptocurrencies suffer a sharp drop after an exceptional Tuesday for digital assets. Bitcoin (BTC) registers a market increase of more than 6%, reaching US$42,138 after having reached US$45,800, its highest level since March 2022. At the same time, Ehereum (ETH) is experiencing a more marked correction, reaching US$2,100 after having exceeded US$2,400 the day before.

The other alternative cryptocurrencies are also showing notable declines, with XRP, cardano (ADA), avalanche (AVAX), dogecoin (DOGE), and polkadot (DOT) declining between 0.4% and 3%. The return of Binance coin (BNB) to fourth place on the list of cryptos with the highest market capitalization stands out, momentarily snatching it from solana (SOL), which has experienced a drop of more than 15% in the last 24 hours.

Bitcoin: the reasons for the sharp fall

These moves follow a rise in expectations around BTC spot exchange-traded funds (ETFs). It is rumored that the US regulator could reject all Bitcoin spot ETFs in January, likely delaying final approval until the second quarter.

The idea is supported that these exchange-traded funds could generate a significant increase in the short term for cryptocurrencies as a whole and, especially, for bitcoin, thanks to the flow of institutional capital that is expected to enter the market.

Although there are skeptical experts, arguing that the market is overloaded, most predict that bitcoin could not only reach the all-time highs of November 2021, but also surpass the $100,000 barrier.

However, some analysts warn that these high expectations could backfire on cryptocurrencies. They warn that if expectations are not met, Bitcoin could face considerable short-term selling pressure, following the "buy the rumors, sell the facts" pattern.

Despite the existence of similar exchange-traded funds in Europe, which have not generated much interest among institutional investors, it is hoped that the support of traditional financial giants such as BlackRock can boost this sector.