On January 5, the cryptocurrency market bounced back strongly due to fresh hope on the expected approval of an exchange-traded fund (ETF) called Spot Bitcoin by the U.S. Securities and Exchange Commission (SEC). Speculation and cryptic X tweets indicating an impending approval have bolstered investor optimism, with social media sources pointing to January 5 as the pivotal day.
Crypto Market Rises Due to Optimism of Investors
Jacquelyn Melinek, a senior crypto reporter for TechCrunch, notably added to the craze with a widely shared tweet that mentioned “sources extremely close to the matter” and alluded to “multiple” ETF approvals set for Friday. Analysts, such as James Seyffart of Bloomberg, have, however, advised caution, calling the conjecture that surfaced on January 5 nothing more than “noise” and waiting for the SEC’s ruling between January 8 and January 10.
All of the main cryptocurrencies have seen a significant upswing, indicating investors’ intense interest in the possible approval of the Spot Bitcoin ETF, despite divergent views on the approval schedule.
Furthermore, some market analysts credit this comeback to investors profiting from the recent market decline, which was partly brought on by worries that the SEC will reject applications for Spot Bitcoin ETFs, as indicated in the Matrixport report earlier this week.
According to the Matrixport analysis, a possible rejection might cause Bitcoin to drop to $36,000. The market’s upbeat reaction to the most recent selloff in the cryptocurrency space, however, suggests that investors view the present decline as a tactical buying opportunity. This optimism wave combined with the alluring price reductions that have occurred after a large market downturn has given the bitcoin scene new life.
A Closer Look Into The Crypto Prices
Gains in the prices of the main cryptocurrencies helped the global crypto market cap regain momentum, rising 1.84% to $1.68 trillion in just the last 24 hours. But as of this writing on Friday, January 5, the entire volume of the cryptocurrency market was $79.34 billion, down 33.43% from the previous day.
Looking at the specific cryptocurrency prices, we can see that the price of Bitcoin was up 2.17% from the previous day to $43,923.15. In the previous day, it reached a high of $44,770 and a low of $42,784. At the same time, the price of Ethereum saw gains of 1.51% and was trading at $2,256.02 at the time of writing.
The price of Solana, among other cryptocurrencies, increased by 2.68% to $100.85, while its trading volume decreased by 39.26% to $3.38 billion. Furthermore, Dogecoin’s price increased by 1.73% and was trading at $0.08361 at the same moment.