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Altcoins Surge Following Bitcoin ETF Approval News
- Bitcoin price barely moves after approval, suggesting news was priced in.
- Ethereum surges towards USD $2.6K amid potential ETF speculation.
- Altcoins across the board rally, with Cardano, Avalanche, Polkadot, Ethereum Classic and Arbitrum seeing 10%+ gains.
For months, the crypto community has eagerly awaited the impact of a spot Bitcoin ETF approval on the price of BTC. In the immediate aftermath of the announcement, it appears suggestions the market had already priced in the news were correct. Although very far from a sell-the-news event, Bitcoin’s value has “only” gained 1.15% over the past 24 hours and is mostly stable between the USD $46-47K mark (approx. AUD $70K). It instead appears as though the market has turned its attention away from Bitcoin and onto the next potential ETFs to be approved – starting with Ethereum.
Ethereum Back Over USD $2.5K
Ethereum (ETH) has hit its highest point since May 2022, with the DeFi goliath closing in on USD $2.6K (AUD $3.8K) amid speculation an ETF approval is just around the corner. In general, the narrative around Ethereum has shifted after what started as a mediocre 2023. The second-largest digital currency has now experienced 93% gains in the past 12 months and looks set to be the next “altcoin” (can we really call Ether an altcoin at this point) to surge.
However in general, the market reacted extremely positively to the Bitcoin ETF news – just not to Bitcoin itself. Altcoins all across the board are posting impressive daily yields, with the market as a whole up 4%.
Several top-100 market cap projects have benefited massively from the Bitcoin ETF news, and not necessarily because investors believe they have an index fund coming. Rather, the influx of money into the market reflects the breakout of a bullish sentiment that has been bubbling away for the best part of three months.
Other big-name altcoins saw 10%+ gains in the hours post ETF approval, with most of them being DeFi networks or Ether-based projects:
- Cardano (ADA) +10.5%
- Avalanche (AVAX) +11.4%
- Polkadot (DOT) +11.83%
- Chainlink (LINK) +10%
- Arbitrum (ARB) +20%
Given the hype that’s spilled into the market in the past 24 hours, it’s likely there will be a lot of give-and-take, as investors seek to secure profits while others attempt to accumulate assets before the next cycle.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
