The first Sunday of the new year saw a relatively calm start for cryptocurrency markets, with Bitcoin (BTC) hovering around the $44,000 mark. Despite ongoing weakness in altcoins, investors are bracing for a decision on ETF approval or rejection in the next three days, which could trigger high volatility.
BTC, the largest cryptocurrency by market value, is finding buyers at $43,960. The upcoming ETF decision on Wednesday has increased Bitcoin’s market dominance. A week before the last Sunday of 2023, we discussed rumors that would shake the market, which indeed happened with a Matrixport report on January 3rd, showing excessive selling.
Investors are likely to encounter more misleading news and volatility triggers. Key price levels for Bitcoin are $43,500 and $42,600, with the $40,500 to $42,000 range still appearing as a strong support.
Bitcoin dominance climbed to 52.1%, while the cumulative volume dropped below $50 billion. The cumulative value of cryptocurrencies is anchored at $1.65 trillion.
While the cumulative value of cryptocurrencies remains stable, the strengthening of BTC’s market dominance is reasonable as we enter the ETF decision period. Investors should expect further weakness in altcoins and observe an increase in BTC interest along with its price. A potential ETF approval could lead BTC to target above $50,000, indicating possible double-digit losses for altcoins. Notably, AKT, GMT, and TIA Coin were among the top gainers in the last week, with increases between 22% and 38.4%.