The crypto market has been the scene of intense turmoil in recent days, after a false announcement dangled the imminent approval of spot Bitcoin ETFs by the SEC. If this misleading information disillusioned bitcoin investors, it paradoxically boosted ethereum and many altcoins, which saw their trading volumes explode upwards.
Ethereum and altcoins boosted by optimism on Bitcoin ETFs
Despite the sham of Bitcoin ETFs which turned against the queen of crypto, Ethereum happily crossed the symbolic threshold of $2,400, up 2.8%. Above all, the decentralized cryptocurrency benefited from very high trading volumes, reflecting growing investor interest in this digital asset with multiple use cases.
Many altcoins like Avalanche, Solana or Cardano also jumped by 3 to 8% simultaneously. This bullish surge reflects optimism among market participants regarding a future approval of spot Bitcoin ETFs in the United States. Such a move would pave the way for massive institutional capital inflows, benefiting the entire crypto ecosystem.
BTC struggles to rebound in a volatile market
Conversely, bitcoin is struggling to recover from its speculative excesses, after falling by more than 2,000 dollars in the space of 24 hours. Briefly rising above $47,000, the historic cryptocurrency fell back below $45,000, reflecting the nervousness of the market after the ETF scandal.
Some are hoping for resistance around $46,200, but caution remains in order. Bitcoin is now trading around $45,000, far from its all-time high of November 2021. For many analysts, this could be a “bear market rally”, a slight burst in a lasting bear market. Others are more optimistic about a lasting rebound.
Bitcoin’s dominance erodes in favor of Ethereum
These brutal jolts bear witness to gradual emancipation ethereum and altcoins compared to bitcoin, despite the latter’s still overwhelming dominance, around 53% of crypto capitalization. Boosted by record volumes, Ethereum and others are now progressing according to their own dynamics, little affected by the temporary collapse of bitcoin.
This turbulent episode recalls the fickle nature of the crypto Wild West, prone to extreme fluctuations on false news or unverified rumors. It also marks the spectacular breakthrough of Ethereum, which asserts itself as the most serious alternative to bitcoin, even if the road remains long to dethrone the crypto veteran. The next few months promise to be exciting, with the specter of a “flippening”, a reversal of the established order!
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.