The cryptocurrency market showed signs of recovery on January 5, fueled by expectations that the U.S. Securities and Exchange Commission (SEC) might approve a spot Bitcoin exchange-traded fund (ETF). Optimism among investors was sparked by social media reports pointing to January 5 as a significant date for potential approval.
TechCrunch’s senior crypto reporter Jacquelyn Melinek contributed to the excitement by citing sources close to the matter who hinted at multiple ETF approvals expected on Friday. However, prominent analysts like Bloomberg’s James Seyffart downplayed the January 5 rumors, suggesting that the SEC’s decision would likely come between January 8 and January 10.
Despite the lack of certainty regarding the approval timing, major cryptocurrencies experienced a noticeable surge, highlighting investors’ hopes for a spot Bitcoin ETF. Some market experts attempted to rationalize this resurgence, suggesting that investors who capitalized on the recent dip, partly due to fears of an SEC rejection, might have triggered the rally.
Matrixport’s report warned that a potential rejection could send Bitcoin prices tumbling to $36,000. Nevertheless, the market’s robust response to the recent downturn was interpreted as investors turning the drop into a strategic buying opportunity.
Globally, the crypto market cap rose by 0.66% to $1.66 trillion in the last 24 hours, showing a positive outlook. Bitcoin’s price increased by 1.17% to $43,860.15, while Ethereum also saw gains. Other leading cryptocurrencies like Solana and BNB experienced modest increases, despite a 29% drop in total market volume to $78.5 billion as of January 5.