The confluence of factors has caused nervousness in the cryptocurrency market

The world's largest cryptocurrency fell almost 14 percent. at the beginning of the week. On Thursday, from around 29 percent, Bitcoin crashed below $000 at one point. eToro. The price has leveled off a bit after the initial sale, however, and is now around $25.

Ethereum recorded a similar sell-off, albeit more subdued - a decrease of 9 percent. week to week. The cryptocurrency started above $1 before Thursday's sell-off pushed it down to $810 on eToro. However, since then, the price has stabilized and is now around $1.

Bitcoin's Worst Week in 2023

Cryptocurrencies experienced a widespread sell-off last week due to several significant trends. A clear catalyst was Elon Musk's SpaceX decision to sell his bitcoin holdings, which triggered a broader rise in cryptocurrency prices.

However, broader macroeconomic factors seem to have sustained the sell-off. This is due to a combination of bond yields hitting 15-year highs, largely due to market expectations adjusting to interest rate levels, as well as many investors' concerns about the state of the property market and the broader economy in China.

All of these factors conspired to drive the price up last week Bitcoin fell by about 11 percent. – it was the worst week in 2023. However, price-wise, we have only returned to the levels seen around June - but much of the rally fueled by the bitcoin ETF news BlackRock has now been erased.

More bitcoin futures ETFs to launch, but ETF spot remains elusive

According to reports Financial TimesEmpowered Funds, an asset manager, is set to launch three new bitcoin futures ETFs. This launch demonstrates continued institutional interest in this asset class, but leaves open questions about whether we will see an approved spot ETF this year.

ETF Funds Futures investors from Empowered will be able to take trend indications to either hold Bitcoin in bull markets or Treasury securities and money market funds in bear markets. In theory, this will help investors preserve capital in an volatile market.

However, futures ETFs are still viewed by many investors as an inferior option for holding cryptocurrencies. The potential launch of BlackRock's bitcoin ETF sent prices skyrocketing in early summer. Since much of that enthusiasm has already been lost, a positive update pending regulatory approval could have an extremely positive impact on the price should it be approved.

Ethereum Network will launch a new testnet

Ethereum developers they are withdrawing the Goerla testnet and launch "Holesky". All testnets on the ethereum network are named after Prague train stations. Goerli has been operational since 2019 and has served as a testbed for major network updates such as The Merge.

However, in recognition of the network's hardworking developers, it is now being replaced by an updated testnet with an emphasis on infrastructure and protocol development. Goerli was criticized by some for "bottlenecks" that slowed down development.

Ethereum testnets are seen as very effective in improving the network as they allow developers to try out innovations with testnet tokens rather than real cryptocurrencies like ethereum. Newer testnets have no limits on test tokens, making it easier for developers to simulate large trade flows.