Cryptocurrency Market Mixed as Bitcoin ETF Approval Results in “Sell-the-News” Event
Major cryptocurrencies experienced mixed trading on Monday evening, following the long-anticipated approval of a spot exchange-traded fund (ETF). The approval of the first-ever spot Bitcoin ETFs had generated significant excitement in the market, but the subsequent response was a “sell-the-news” event.
Bitcoin (BTC) retraced to a low of $41,600 before rebounding, after briefly surging to a two-year high above $49,000. The market’s response to the spot Bitcoin ETFs has been relatively subdued, despite the cautious approval by the Securities and Exchange Commission (SEC). Market participants are now focused on the potential inflow of capital into these new ETFs.
However, analysts from J.P. Morgan remain skeptical about the optimism surrounding the spot Bitcoin ETF approval. They are not convinced that a significant amount of fresh capital will enter the crypto space as a result. The market’s response to the ETF approval has been relatively subdued, and it remains to be seen how much capital will flow into these new investment vehicles.
In terms of price movements, Bitcoin recorded a gain of 0.75% and was priced at $42,619. Ethereum (ETH) also saw a gain of 0.81% and was priced at $2,517. Dogecoin (DOGE), on the other hand, experienced a slight decline of 0.11% and was priced at $0.080.
In terms of top gainers in the past 24 hours, Flare (FLR) recorded the highest gain of 35.65%, followed by Blur (BLR) with a gain of 14.54%, and Sei (SEI) with a gain of 13.69%.
The global cryptocurrency market cap currently stands at $1.68 trillion, showing a 0.58% decrease in the past 24 hours.
While the cryptocurrency market experienced mixed trading, stock futures declined on Monday night. Investors are awaiting further data and bank earnings to gain more insight into the state of the American consumer. The upcoming December retail sales data, expected to be released on Wednesday, will be closely watched as it may indicate a potential economic slowdown if U.S. consumer spending shows signs of cooling.
Cryptocurrency analyst Michael Van de Poppe has observed that the Bitcoin ETF has yielded a negative return since its inception. However, he believes that the real impact of the ETF will be seen in the coming years and considers it a mega bullish event.
Pseudonymous analyst DonAlt has suggested that Bitcoin may be due for a corrective movement after reaching $60,000, but he foresees a subsequent surge driving the price potentially as high as $90,000.
On-chain analytical firm Santiment has observed that larger Bitcoin wallets were moving older coins at a heightened pace in anticipation of the recent Bitcoin ETF approvals. However, there are signs that this movement may be coming to an end, which could potentially halt the current bull cycle.
Overall, the approval of the spot Bitcoin ETFs has generated mixed reactions in the cryptocurrency market. While there was initial excitement, the subsequent response has been relatively subdued. Market participants are now closely watching how these new investment vehicles will attract capital and impact the overall market.
