Bitcoin ETF Approval Sparks Positive Sentiment in Crypto Market
Bitcoin and other crypto tokens were trading with decent gains in the early week on Monday in Asia as the way cleared for the Bitcoin ETF in the US. The US Securities and Exchange Commission (SEC) will not appeal the court’s scathing reversal of its decision not to let Grayscale convert its bitcoin trust into an exchange-traded fund (ETF).
Bitcoin and Ethereum Jump
Bitcoin jumped more than a per cent as the last crypto token managed to regain the 27,000-levels. However, its largest peer, Ethereum, was also in green but inched up only half-a-per cent to hold above $1,550-level. Altcoins were also trading with decent gains in the early morning.
SEC Decision Drives Market Sentiment
Bitcoin has been trading approximately around the $27,000 level following the SEC’s decision not to challenge a recent court ruling that favored Grayscale Investments. The court’s verdict requires the SEC to undertake a review of Grayscale’s ETF application, said Edul Patel, Co-Founder & CEO at Mudrex.
Positive Sentiment Drives Market
“Market participants are now cautiously hopeful for potential approval of Bitcoin’s spot ETF applications by the SEC, resulting in a slightly positive sentiment. Bitcoin will now need to break through the $27,400 mark or find support around $26,900. Meanwhile, Ethereum continues to trade around $1,500,” he said.
Market Gains and Volumes Surge
Barring a few exceptions, the majority of top crypto tokens were trading higher on Monday. Tron and BNB gained 2 per cent each, while Chainlink jumped more than a per cent each. Solana and Litecoin were among the other key gainers in the morning. On the contrary, Polygon and Dogecoin were among the key gainers for the day.
The global cryptocurrency market cap was trading significantly higher, jumping to $1.06 trillion-mark, as it declined about one per cent in the last 24 hours. However, the total trading volumes surged as much as 38 per cent to $19.4 billion.
Positive Developments Drive Gains
Bitcoin and Ethereum both showed positive gains over the weekend, driven by the news that the SEC won’t appeal the court decision regarding Grayscale’s spot Bitcoin ETF application. This news has sparked the interest of investors, as it raises the likelihood of a Bitcoin spot ETF approval by the end of the first quarter of 2024, said CoinDCX Research Team.
Tech View by Giottus Crypto Platform
Solana (SOL) is in an ascending trend with the asset trading above its 50-day simple moving average ($20.5). After recording short-term gains earlier this month, the asset is trying to regain momentum past two weeks of negative price action. Its Bollinger Bands are currently wide as the price volatility increases near the $22 mark. Price action is trending equal to the indicator’s mean line.
Investor Recommendations
The indicator’s bottom line provides support at $19.7 while the upper limit presents a resistance level at $24.5. Its RSI has started to climb above the neutral zone reflecting resumption of buying activity. If SOL successfully breaches through the $24.5 barrier in near term, it may encounter next resistance at $27.5.
The overall positive developments in the crypto market have driven gains and instilled hope in investors for potential approval of Bitcoin’s spot ETF applications by the SEC. As the market continues to react to news and developments, analysts recommend cautious optimism and careful consideration of investment decisions.
I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
