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Bitcoin stalled on Wednesday as investors awaited formal U.S. Securities and Exchange Commission approval for the Spot Bitcoin exchange-traded fund, a day after the regulator’s X account posted a false announcement about the long-awaited news.
price of Bitcoin It was last down more than 2% at $45,699.19. meanwhile, ether Tokens tied to Polygon, a blockchain that runs parallel to Ethereum, rose 11% on Wednesday.
Bitcoin and Ether first spiked on Tuesday afternoon, shortly after the SEC announced that the X (formerly known as Twitter) account had been compromised and provided false information to the public. Bitcoin rose to $47,901, but it wasn’t the rocket-like rise many were expecting.
Bitcoin and Ether in the last 24 hours
“This price move has been a nightmare for short-term leveraged traders, but ultimately nothing much has changed and Bitcoin seems to be holding up and still in position to push above $50,000 before SEC approval is actually confirmed. ” he said. Joel Krueger, Market Strategist at LMAX Group.
Wednesday is the deadline for the SEC to approve or deny Ark21Shares’ Spot Bitcoin ETF application. It is widely believed that the agency will issue multiple approvals at once. Some investors expect this decision to be selling news, while others are hoping for a big rally.
Data provider CryptoQuant shows that investors are saddled with high unrealized gains. This is a trend that historically precedes a price correction. Julio Moreno, head of research at CryptoQuant, told CNBC that if Bitcoin rallies significantly after the SEC decision, it could risk a correction to $36,000.
“Demand for Bitcoin will definitely increase with the approval of ETFs, but the possibility of a price correction cannot be ruled out,” he said.
rotation into the ether
Meanwhile, investors are keeping an eye on what happens after the approval of Bitcoin ETFs, especially Ether.
“The movement where there is a consensus as soon as an ETF is approved is like the rotation from Bitcoin to Ethereum,” said Connor Ryder, head of research at stablecoin firm Ethena Labs. “It’s all about getting ahead of the story. Bitcoin has been rising against Ether for the past six months thanks to spot ETF speculation, but ETF approvals have put a bow to that narrative. Meanwhile, ETH has gained momentum This is the case for smaller Layer 1s like Solana. ”
The SEC is expected to make decisions on spot ETH ETF applications starting in May. black rock, invescoArk and VanEck are among the companies expected to receive approval, as well as Grayscale, which is converting its existing operations. Ethereum Trust (ETHE) Invest in ETFs.
Ether lagged Bitcoin in 2023, rising only 90% compared to Bitcoin’s 157%. When a crypto bull market heats up, Ether tends to follow Bitcoin and precede altcoins.
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