Bitcoin’s (BTC) price spiked to its highest level since December 2021 in the morning trading hours on Thursday as multiple spot BTC ETFs began trading less than 24 hours after receiving approval from the Securities and Exchange Commission (SEC).
Data provided by TradingView shows that the volatility that was witnessed in the lead-up to the ETF approval continued after their launch, with Bitcoin’s price rallying from a low of $45,605 in the pre-market hours to a high of $49,111 shortly after U.S. markets opened, a spike of 7.7%.
BTC/USD Chart by TradingView
But the gains were short-lived as BTC proceeded to retrace nearly all the ground it gained over the next couple of hours, and now finds itself back near the well-worn support level of $46,000.
With BTC trading near the same range it's been oscillating in since the start of the year, it’s too early to tell if this is a ‘buy the rumor, sell the news’ event, or a ‘buy the rumor, buy the news’ event. For now, it appears to be a “buy the rumor and then trade sideways” development.
Day 1: Buy the rumor, sell the hack
Day 2: Buy the rumor, ____ ? https://t.co/r15C70vQWi— zerohedge (@zerohedge) January 10, 2024
While Bitcoin continues to whipsaw, only to finish where it started, the ETF news has been a boon for altcoins, which surged higher in trading on Thursday amid rising optimism from crypto traders.
Daily cryptocurrency market performance. Source: Coin360
Out of the top 200 tokens, only four currently show a loss of over 1%, while 66 projects have recorded double-digit gains, led by Ethereum Name Service (ENS), which is up 43.1% at the time of writing, and Ethereum Classic (ETC), which has gained 40.4%.
Ethereum (ETH), the second-ranked crypto by market cap and top smart contract platform, hit a high of $2,690 on Thursday, its highest price since May 2022, and looks primed to extend its rally as investors now focus on the approval of the first spot Ether ETF in the U.S.
ETH/USD Chart by TradingView
According to MN Trading founder Michaël van de Poppe, Ether will likely outperform Bitcoin in the months ahead as the top crypto consolidates following its nearly 200% increase since the start of 2023 while the Ether ETF debate starts to gain more attention.
#Bitcoin reached the level I've mentioned for the past months.
I think we'll consolidate. The news is out, the ETF is live, it's great.
Rotation towards Ethereum. pic.twitter.com/zH8CC5oJhf— Michaël van de Poppe (@CryptoMichNL) January 11, 2024
