Technology
Thursday, January 11th, 2024 3:09 pm EDT
Key Points
- Bitcoin Surges to New Heights Following SEC Approval for ETFs: The main focus of the article is on the significant surge in Bitcoin’s price to levels not seen since December 2021. This surge was triggered by the Securities and Exchange Commission (SEC) granting approval for the first-ever spot Bitcoin exchange-traded funds (ETFs) to trade in the United States. Bitcoin’s price rose over 5% to $48,446.74, briefly surpassing $49,000. The approval of Bitcoin ETFs is described as a watershed moment for the crypto industry, marking the culmination of efforts that began over a decade ago. Optimism had been growing since Grayscale’s legal victory in August, resulting in an 80% increase in Bitcoin’s price.
- Impact on Mining Stocks and the Broader Crypto Market: The article emphasizes the broader impact of the SEC’s decision on the cryptocurrency market. Initially, Bitcoin experienced a slight dip after the announcement, but the expectation is that Bitcoin ETFs will drive demand and, consequently, increase the price of Bitcoin. The positive momentum extended to mining stocks, which tend to reflect longer-term investor sentiment toward Bitcoin. Wall Street favorites such as Iris Energy, CleanSpark, Marathon Digital, and Riot Platforms saw significant boosts, gaining 6%, 8%, 8%, and 6%, respectively. The article underscores the potential influence of institutional and retail interest in the wake of the ETF approval.
- Ether’s Response and Future Expectations: The article also discusses the impact on Ethereum and its native cryptocurrency, Ether. Ether experienced an 8% increase to $2,678.74, reaching levels not seen since May 2022. The rally in Ether positively affected other coins within the Ethereum ecosystem, with tokens tied to Polygon, Chainlink, and Uniswap gaining 10%, 7%, and 9%, respectively. The article suggests a shift in trader focus from Bitcoin to Ether, anticipating the possibility of the next narrative being an Ethereum ETF. Despite Ether’s recent surge, it is highlighted that Ether lagged behind Bitcoin in 2023, rising only 90% compared to Bitcoin’s 157%, emphasizing the competitive dynamics within the crypto market. The SEC’s upcoming decisions on spot Ethereum ETF applications, scheduled for May, are also noted, involving firms like BlackRock, Invesco, Ark, VanEck, and Grayscale. The article concludes by emphasizing the importance of staying ahead of evolving narratives in the cryptocurrency space.
Bitcoin experienced a significant surge, reaching levels unseen since December 2021, following the Securities and Exchange Commission’s (SEC) approval for the first-ever spot Bitcoin exchange-traded funds (ETFs) to trade in the U.S. The cryptocurrency rose more than 5%, reaching $48,446.74, briefly surpassing $49,000. Ether also saw an 8% increase, reaching $2,678.74, levels not witnessed since May 2022. This ETF approval marks a pivotal moment for the crypto industry, a goal sought for over a decade, especially after Grayscale’s legal victory against the SEC in August, boosting Bitcoin’s price by 80%. While Bitcoin initially dipped after the SEC decision, expectations are high for Bitcoin ETFs to drive demand and, subsequently, the price of Bitcoin. Mining stocks, influenced by Bitcoin’s price, experienced a notable surge, with Iris Energy, CleanSpark, Marathon Digital, and Riot Platforms gaining 6%, 8%, 8%, and 6%, respectively.
Ether’s rally had a positive impact on other coins within the Ethereum ecosystem, with Polygon, Chainlink, and Uniswap gaining 10%, 7%, and 9%, respectively. Traders appear to be shifting focus to Ether in anticipation of the next narrative—an Ethereum ETF. Conor Ryder, Head of Research at Ethena Labs, noted that with Bitcoin ETF speculation materializing, traders are now rotating to Ether, considering it relatively inexpensive compared to other tokens. The SEC is set to make decisions on spot Ethereum ETF applications from May onwards, with firms like BlackRock, Invesco, Ark, VanEck, and Grayscale seeking approval. The competition between Bitcoin and Ether is highlighted, as Bitcoin outperformed Ether in 2023, rising 157% compared to Ether’s 90%, and ETF approval seems to solidify Bitcoin’s narrative while Ether strives to find momentum in the market. The dynamics within the crypto space are evolving, with the approval of Bitcoin ETFs setting the stage for potential advancements in Ethereum’s market position.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/10/bitcoin-falls-ether-surges-after-sec-greenlights-launch-of-us-bitcoin-etfs.html
