SEI Price Dips Amid Panic Selling, How Will SEI Fare In 2024?

“As goes January, so goes the year”. This is a popular belief in the Wall Street circles. Advocates of the January Barometer believe that the market’s first-month performance sets the mood for the whole year.

Building on this pretext, major digital assets have been having a ball since last month. Some argue that “crypto is back from the grave.” Optimism grows stronger every day that the US Securities and Exchange Commission (SEC) will give its blessing to the first wave of spot Bitcoin exchange-traded funds (ETFs) as early as next week.

The much-hyped Bitcoin ETF is proving to be a boon for the cryptocurrency market, with BTC price up 1.8% and Ethereum up 1.4% over the last 24 hours. While smaller tokens, or altcoins, are swinging back and forth between green and red, the investor sentiment around the crypto market is largely bullish.

Over $1.5 Million In SEI Long Positions Liquidated In the Last 24 Hours

However, prospects for SEI — the namesake token of layer-1 Sei Network launched last year — look ominous. The SEI token tanked nearly 7.5% earlier today to $0.73, sending its market capitalization tumbling to $1.7 billion, from $1.82 billion in a matter of 24 hours. However, the token has since reversed some losses but is still trading in the red. As of writing, SEI price stood at $0.74, down over 3% over the last 24 hours.

Meanwhile, trading volumes sank more than 46% to $865 million in the past 24 hours, indicating a diminishing retail interest in the crypto asset. Nearly $88 million in crypto long positions were liquidated in the past 24 hours, including $1.51 million in SEI long positions, according to data from CoinGlass.

SEIYAN Meme Coin Bears the Brunt

The recent SEI price drop appears to have spilled over to the Dragon Ball-inspired meme coin SEIYAN. The meme coin saw a decline in its price action in recent days. While it’s still up 6% in the past seven days, the numbers are nowhere near the 285% jump it saw in the last 14 days. Data suggests that interest in the SEI token is waning, which could affect its prices in the near term.

Now, all eyes are on the US securities watchdog, with the spot Bitcoin ETF decision still pending. Analysts argue that the approval of such a product will usher in huge investment into the crypto sector, as investors will be able to buy into Bitcoin, without having to learn the nuances of crypto exchanges and wallets.

Also Read: Bitcoin Long-Term Holders Stand Strong Despite Recent Crypto Market Selloff