Crypto market has started to grow – What is it related to?
Crypto market has started to grow – What is it related to?
On January 5, there was increased activity in the crypto market. The lively trading takes place against the background of the soon-to-be approval by the U.S. Securities and Exchange Commission (SEC) of spot exchange-traded funds on Bitcoin.
Crypto analysts are competing in optimistic forecasts and posting speculations on social media about the possible approval of the BTC ETF as early as Friday, January 5, according to CoinGape.
Investors are responding to the speculative rumors by buying up Bitcoins and betting on a positive SEC decision. For example, on the gambling site Polymarket, based on the Polygon blockchain, traders have placed about $1.5 million worth of bets on the ETF's approval.
At the time of writing, Bitcoin is trading near $43,860, up 1.4% in 24 hours. Ethereum is up 0.6% at $2,245. The price of Solana reached $100, a 2 percent increase.
Crypto columnist Jacquelin Melinek shared a tweet saying that influential sources hinted at "multiple" ETF approvals on Friday.
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At the same time, Bloomberg analyst James Seyffarth urged caution, stressing that he doesn't expect the ETF to be approved on Jan. 5, but rather to wait for the SEC's decision between Jan. 8 and Jan. 10.
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However, even conflicting opinions from experts are not deterring investors, who continue to actively buy cryptocurrencies, causing their value to rise in the markets. This confirms the strong interest of buyers in spot Bitcoin ETFs, which has already become an indicator of the importance of the new product.
Analysts explain the market's revival by the fact that investors are taking advantage of the decline in the price of major cryptocurrencies, which occurred amid fears that the SEC would reject applications for spot Bitcoin ETFs or postpone their consideration. This situation came to light following the release of the Matrixport report.
This report indicated that a potential ETF rejection would cause the value of BTC to drop to $36,000.
However, the active buying of Bitcoin following the recent sell-off in the cryptocurrency market indicates that investors, especially large funds, saw the current downturn as a promising buying opportunity. This surge of optimism, coupled with attractive price declines following a significant market correction, has energized the cryptocurrency landscape.
