As the crypto market awaits the SEC’s ongoing review of spot ETF applications, Bitcoin‘s price fell below $45,000 on January 10. At the time of writing, Bitcoin was trading at $45,622, experiencing a 1.16% decrease over the past 24 hours. The market is on edge about what the future holds for cryptocurrency.
Bitcoin faced high volatility within the last 24 hours following a security breach on the SEC’s official website, which led to the false approval of a spot Bitcoin ETF application. This incident briefly pushed Bitcoin’s price near $48,000 due to market excitement.
However, after the SEC declared the tweet about the ETF approval to be fake, Bitcoin’s price dropped below $45,000, causing significant liquidations in the futures market. Despite the turmoil, Bitfinex analysts remain optimistic about the approval of spot Bitcoin ETF applications by asset managers in the U.S.
Bitfinex executive Jag Kooner suggests that the approval of a spot Bitcoin ETF could lead to an influx of approximately $155 billion into the market value of Bitcoin funds. Kooner highlights that increased institutional investment, especially during a time of record highs in crypto futures and CME exchange open interest, will be a critical test.
Experts like XRPL Commons founder David Bchiri believe that SEC approval could integrate Bitcoin into the mainstream financial system, potentially triggering a wave of approvals in other jurisdictions. Traditional finance firms like Blackrock and VanEck are poised to play a significant role in bringing cautious investors into crypto. Nansen’s lead research analyst Aurelie Barthere suggests that ETF approvals could reduce volatility with new institutional liquidity, while CryptoQuant analysts highlight the risks of a notable price correction, pointing to data indicating short-term Bitcoin holders selling off their assets.