Bitcoin and other cryptocurrencies experienced a sharp increase in value before retracing their gains following the approval of the first spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). While the crypto community hailed the SEC's decision as a positive development, the price movement indicated a classic case of "buy the rumor, sell the news" dynamics at play.

Over the past 24 hours, the price of Bitcoin has risen by 2% to reach $46,300. It briefly dipped to $45,600 on Wednesday after hackers gained access to the SEC's social media account and posted false information about ETF approvals. Following the official green light from the SEC for funds offered by major issuers like BlackRock, ARK, and Grayscale on Wednesday, Bitcoin surged to $47,750. However, this spike fell short of the initial surge above $48,000 triggered by the hacked SEC post.

The expectation of a spot Bitcoin ETF approval has been a driving force behind the rally in digital assets since last summer, with Bitcoin experiencing an increase of over 80% since mid-June when BlackRock initially applied to launch such a fund. However, as anticipation grew exponentially in recent weeks due to the impending SEC decision deadline, there was a possibility that traders would "sell the news" upon approval.

There is some evidence suggesting that this scenario has unfolded, as prices have not significantly reacted to this long-awaited catalyst. Nevertheless, proponents of cryptocurrencies highlight the potential long-term benefits of a spot Bitcoin ETF.

While Bitcoin has been in the spotlight, other digital assets have also performed well. Ether, the second-largest cryptocurrency, surged by 10% to reach $2,620. Smaller altcoins demonstrated even higher gains, with Cardano climbing by 17% and Polygon popping by 12%. Memecoins such as Dogecoin and Shiba Inu also experienced an 8% increase each.

As the cryptocurrency market continues to evolve, the approval of Bitcoin ETFs by the SEC has stirred significant volatility, capturing the attention of investors and enthusiasts alike.

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