Surprisingly, the Bitcoin and altcoin market witnessed an unexpected rally and subsequent correction following a fake announcement regarding the approval of spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). Traders and investors were in a state of confusion after the news spread prematurely on social media platform X on Tuesday, January 9, 2024.
Altcoin prices rise with Bitcoin ETF announcement
Contrary to market sentiment around the U.S. Securities and Exchange Commission’s (SEC) potential approval of a spot Bitcoin ETF, traders and investors in the crypto space were subjected to unnecessary confusion on Tuesday, January 9, 2024, when the approval announcement was shared prematurely on the social media platform. In context, on-chain data shows a change in trading dynamics between Bitcoin (BTC) and several altcoins.
Santiment’s on-chain data reveals a notable trend following the fake announcement. cryptokoin.com As reported by Bitcoin, Bitcoin’s price initially rose to $47,900 but quickly fell to $45,500, triggering liquidations worth more than $140 million within hours. Surprisingly, the impact on certain altcoins, including Ethereum (ETH), HEX, AAVE, Lido DAO (LDO), and PEPE, defied the typical correlation with the Bitcoin price. These altcoins experienced an uptrend despite Bitcoin seeing a 3% decline, indicating a rare deviation from established market dynamics.
What do these events mean?
As the market recovers following the fake ETF approval announcement, Ethereum is emerging as a resilient player, showing a price increase of 3.35% in the last 24 hours. Lido DAO Price (LDO) remains in the shadows, registering a significant gain of 19% in the same period. The cryptocurrency community is now cautiously observing whether this altcoin rally will continue regardless of Bitcoin’s fate once the official spot ETF approval is announced. Historically, sustained bull runs for Bitcoin have often led to significant inflows of funds into altcoins, signaling a potential shift in market dynamics.
Recent events serve as a stark reminder of the cryptocurrency market’s susceptibility to misinformation and premature announcements. While the community awaits the official announcement regarding Bitcoin spot ETF approval, altcoins’ resilience in the face of market turbulence raises intriguing questions about their future trajectory. Time will tell whether the altcoin’s rise will be disproportionate to BTC if the Spot ETF approval is officially announced. However, historically, a sustained bull run for Bitcoin has been positive for the market.
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