On January 10, the US Securities and Exchange Commission (SEC) approved all 11 applications to launch spot Bitcoin ETFs. True, BTC reacted to this news by falling, but Ethereum (ETH) broke through its annual maximum.
Many participants in the cryptocurrency community expected that if the regulator made a positive decision, the price of the first cryptocurrency would skyrocket. However, this did not happen. Crypto trader in detail explainedwhy exactly.
Everything is just ahead
Against the backdrop of the announcement that the Commission gave the green light to spot ETFs on BTC, the price of Bitcoin immediately dropped to $45 thousand. According to CoinGecko, the lowest level over the last 24 hours was $44,590, and the highest was $47,598.
In total, over the past day the price of BTC strengthened by 0.7%. Currently, the first cryptocurrency is trading at $46,101, with a daily trading volume of $53.6 billion.
A crypto trader under the nickname British HODL explained on Twitter why the Bitcoin rate has remained virtually unchanged. He identified three main factors:
- leverage was almost destroyed;
- everyone who wanted to participate in the trading invested in BTC before the final decision of the SEC;
- ETFs will begin accepting capital only with the opening of trading in the United States.
Bloomberg analysts now predict that about $4 billion will be poured into ETFs on the first day of trading. In this case, according to British HODL, by the close of trading on Friday, the price of BTC may well reach a range from $50 thousand to $57 thousand. So far, there is no buying pressure yet began.
ETH price has updated its annual maximum
Altcoins were definitely pleased with the news about the approval of spot ETFs on BTC. Thus, on the night of January 11, Ethereum broke through the level of $2,600 – the highest level since May 2022.
According to CoinGecko, the cumulative growth over the past day was 9%. At the time of writing, ETH is trading at $2,594. The daily trading volume over the last 24 hours has almost caught up with Bitcoin and amounted to $53.3 billion.
Now, some experts are confident that the SEC will also approve ETH spot ETFs this year. Bloomberg analyst Eric Balchuans estimates the chances of launching new products in the spring at 70%.
Source: Cryptocurrency
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