Bitcoin Drops Below $46K; ETF Approval Awaited
By Laxmikant Khanvilkar
Virtual digital assets (VDA) experienced wild swing in price during the last 24-hours as the news of spot Bitcoin (BTC) exchange traded funds (ETFs) approval appeared on social media was turned out to be false.
BTC rallied to a fresh 19-month high of $47,900 immediately following the official Securities and Exchange Commission (SEC) account’s shared on X (formerly Twitter) about the bitcoin ETF approval, which was denied by SEC Chair Gary Gensler saying that the SEC’s account was compromised.
The clarification sent bitcoin tumbling down nearly 6% to as low as $45,100. Recently, BTC changed hands at $45,667 down 2.3%.
The wild price action liquidated over $50 million worth of derivatives trading positions on crypto exchanges within an hour, CoinGlass data shows.
Amid this market turbulence Ethereum (ETH), the second largest cryptocurrency, made a strong statement by holding on to its gain. In fact, Vitalik Buterine pioneered token outperformed broader market by collecting gains of 3.3% to trade at $2,382 recently. As the Dencun upgrade date is nearing the protocol is buzzing with activity.
Meanwhile, large-cap tokens such as XRP, Solana, Cardano, Dogecoin, are currently witnessing mixed trend. Interestingly, a false social media post triggered massive volatility in dogecoin (DOGE) price as well. The coin once promoted by Elon Musk, initially surged 9% on an X post about the death of the token’s mascot, then declined as the news turned out to be false.
Eventually, the global crypto market cap decreased 0.2% to $1.71 trillion in the last 24 hours. Simultaneously, the total crypto market volume slipped 3.9% to $84.3 billion. Total volume in DeFi is currently $7.1 billion, and all stablecoins are $74.6 billion, representing 8.4% and 88.6%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 52.6%, down 0.6% over the day.
The IC15 index, the barometer of the top fifteen tokens, eased 0.4% to 57,796.
Meanwhile, market observers pointed that today’s event is a precursor to bitcoin price movement when the real news about an approval arrives.
“Fake ETF news showed BTC upside is clearly capped until we see actual ETF inflows,” Alex Krüger, co-founder of Asgard Markets, said in an X post. “Time for ETH to take over.”
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