In a landmark decision following years of anticipation, the U.S. Securities and Exchange Commission (SEC) has finally approved a spot Bitcoin ETF, kicking off a series of price swings and increased market volatility. This approval marks a significant step forward for the cryptocurrency industry, marking the culmination of a decade of efforts to bring this financial product to the U.S. market with regulatory approval.
Decade-long Bitcoin ETF speculation culminates with SEC move
The road to approval for a spot Bitcoin ETF has been one of prolonged speculation and regulatory hurdles. Throughout the beginning of this year, the cryptocurrency industry remained in a state of uncertainty as the SEC’s decision came into focus. After years of rejecting and delaying numerous applications, securities regulators were expected to approve a spot Bitcoin ETF in early 2024.
The anticipation surrounding this decision has already created volatility in the markets over the past week. But the real action began on January 10th, when the SEC officially approved several spot Bitcoin ETFs. The immediate impact was seen on the price of Bitcoin as the cryptocurrency went on a roller coaster ride. It first fell to $44,200, then surged to nearly $48,000 and then back to just below $46,000. As of the latest update, Bitcoin has stabilized at just over $46,000.
Altcoins that shine even amid market turmoil
While Bitcoin has taken center stage since the SEC’s decision, it is worth noting that several altcoins have outperformed major digital assets. In particular, Ethereum (ETH) posted an impressive 8% gain, surpassing its 20-month high of $2,600. Other altcoins such as ripple, Dogecoin, Polygon and Chainlink also saw significant increases in value. Cardano, Polkadot, and Avalanche experienced double-digit surges, with prices rising to $0.58, $8.3, and $39, respectively.
The positive momentum extended to small and mid-cap altcoins, with notable gains seen in assets such as ENS (43%), ETC (31%), SUI (25%), and MNT (25%). The collective impact of these movements increased the total cryptocurrency market capitalization by more than $50 billion overnight, with the current market capitalization standing at $1.77 trillion.
Market dynamics and precautions
As the cryptocurrency market experiences these dynamic changes, investors must exercise caution and conduct thorough research before making any investment decisions. The information provided here is a brief overview of recent developments in the market and users are advised to use it at their own risk. The disclaimer emphasizes the importance of individual research and acknowledges the inherent risks associated with investing in cryptocurrency.