Recent days have brought a surprising turn of events in the cryptocurrency market, as leading digital assets like Bitcoin and Ether have encountered significant declines. This unexpected downturn follows the recent approval of spot Ethereum ETFs by the US Securities and Exchange Commission (SEC), a move that was anticipated to spark a market rally but instead has led to a notable correction in prices.

The downturn can be attributed to a confluence of factors, including widespread liquidations and a prevailing risk-off sentiment among investors. On-chain data indicates a notable influx of cryptocurrencies into exchanges, a trend often associated with impending market corrections. Moreover, external economic factors such as increasing US Treasury yields and delays in anticipated Federal Reserve interest rate adjustments have further contributed to the market's downturn.

Despite the current market conditions, industry experts maintain a positive outlook, viewing this downturn as a temporary setback with expectations of a bullish resurgence once inflows into the ETFs materialize. Analysts like Faibik express confidence in Bitcoin surpassing $100,000 this year, while institutions such as Standard Chartered and Bernstein project even higher price targets, with Bitcoin potentially reaching $200,000 and Ether exceeding $7,000.

The past week has brought some positive developments for the cryptocurrency market, notably the passage of the FIT21 bill by the US House of Representatives, a significant step towards legitimizing blockchain technology and cryptocurrencies. Additionally, the Federal Reserve's prohibition on the creation of a Central Bank Digital Currency (CBDC) has been met with approval by experts concerned about privacy and surveillance implications.

The SEC's green light for eight Ethereum spot ETFs represents a pivotal moment in the market, with experts anticipating heightened volatility in the near future. While the current downturn may raise concerns, industry analysts view it as a temporary adjustment and anticipate a market rebound once the ETFs are officially listed and capital inflows commence.

In summary, the cryptocurrency market's recent downturn, despite being unexpected, is viewed by experts as a short-term correction, with optimism surrounding the potential for a bullish resurgence once ETF inflows materialize. Positive legislative developments and institutional confidence in the long-term viability of digital assets continue to shape the market's trajectory, underscoring the resilience and potential for growth within the cryptocurrency space.