Cryptocurrency Market Dynamics: BTC and ETH Sustain Gains Amidst Market Turbulence Triggered by False ETF Approval Reports
Bitcoin’s 24-Hour Rollercoaster: A Decline of $835 Sparks Market Fluctuations in the Cryptocurrency Landscape
On Wednesday, December 10, Bitcoin experienced a marginal decline of 1.71%, bringing its trading value to $45,917 (approximately Rs. 38 lakh). Despite this minor setback, the cryptocurrency remained resilient. Over the last 24 hours, Bitcoin witnessed a reduction of $835 (around Rs. 69,432), attributing this fluctuation to the intriguing developments surrounding BTC ETFs awaiting approval from the US Securities and Exchange Commission (SEC).
The market turbulence stemmed from a peculiar sequence of events related to the SEC’s official Twitter account. In an unexpected twist, a tweet from the SEC’s account claimed approval for all spot Bitcoin ETFs. However, Gary Gensler, the SEC chief, swiftly clarified that the tweet was a result of a hack, and the approval news was false. This turn of events prompted calls from security lawyers for the SEC to conduct an internal investigation into potential market manipulation.
According to insights shared by the CoinSwitch Market Desk with Gadgets360, Bitcoin’s price surged to over $48,000 (roughly Rs. 39.9 lakh) in response to the false approval news, only to retreat to $45,000 (approximately Rs. 37.4 lakh) before settling at its current value. The incident highlights the susceptibility of cryptocurrency markets to external factors and the impact of misinformation on price dynamics.
Ether managed to mint a gain of 1.62 percent despite the market’s volatility. At the time of writing, Ether was trading at $2,346 (roughly Rs. 1.95 lakh).
“Ethereum had an ETF dress rehearsal yesterday, and continued pumping even as the ETF news turned out to be false. This upward momentum positively affected associated tokens. Top ETH staking provider Lido Finance (LDO) soared by 18 percent, while Layer 2 solutions such as Arbitrum’s ARB saw a four percent increase, and Optimism’s OP surged by three percent,” the CoinSwitch markets desk added.
“This ETF fever has stirred both speculation and caution within the broader cryptocurrency landscape. Ethereum faced significant pressure, touching a 32-month low against Bitcoin amidst growing anticipation surrounding Bitcoin ETFs,” said Rajagopal Menon, Vice President, WazirX in conversation.
Forecasts from industry experts indicate that the ongoing volatility in the cryptocurrency market is expected to persist throughout the remainder of this week. In light of these predictions, seasoned investors are being advised to approach the market with a heightened sense of caution, acknowledging the potential for rapid and unpredictable price movements in the coming days. As the market remains susceptible to various external factors, strategic decision-making and a vigilant approach are emphasized to navigate the current landscape.
