Bitcoin and other crypto tokens gain as SEC clears way for Bitcoin ETF
Bitcoin and other crypto tokens were trading with decent gains in the early week on Monday in Asia as the way cleared for the Bitcoin ETF in the US.
Bitcoin and Ethereum Show Positive Gains
Bitcoin jumped more than a per cent as the last crypto token managed to regain the 27,000-levels. However, its largest peer, Ethereum, was also in green but inched up only half-a-per cent to hold above $1,550-level. Altcoins were also trading with decent gains in the early morning.
SEC Decision Impact on Bitcoin
Bitcoin has been trading approximately around the $27,000 level following the SEC’s decision not to challenge a recent court ruling that favored Grayscale Investments. The court’s verdict requires the SEC to undertake a review of Grayscale’s ETF application, said Edul Patel, Co-Founder & CEO at Mudrex.
Tech Giants React to Positive Market Sentiment
“Market participants are now cautiously hopeful for potential approval of Bitcoin’s spot ETF applications by the SEC, resulting in a slightly positive sentiment. Bitcoin will now need to break through the $27,400 mark or find support around $26,900. Meanwhile, Ethereum continues to trade around $1,500,” he said.
Market Performance
Barring a few exceptions, the majority of top crypto tokens were trading higher on Monday. Tron and BNB gained 2 per cent each, while Chainlink jumped more than a per cent each. Solana and Litecoin were among the other key gainers in the morning. On the contrary, Polygon and Dogecoin were among the key gainers for the day.
Global Cryptocurrency Market Cap Surges
The global cryptocurrency market cap was trading significantly higher, jumping to $1.06 trillion-mark, as it declined about one per cent in the last 24 hours. However, the total trading volumes surged as much as 38 per cent to $19.4 billion.
Impact of SEC news on Cryptocurrency Market
Bitcoin and Ethereum both showed positive gains over the weekend, driven by the news that the SEC won’t appeal the court decision regarding Grayscale’s spot Bitcoin ETF application. This news has sparked the interest of investors, as it raises the likelihood of a Bitcoin spot ETF approval by the end of the first quarter of 2024, said CoinDCX Research Team.
Luxury Sports Car Company Accepts Cryptocurrency
“The positive development of Ferrari, a luxury sports car company, accepting cryptocurrency as payment for its cars in the US and soon in Europe, has contributed to this positive sentiment,” it added.
Tech View by Giottus Crypto Platform
Solana (SOL) is in an ascending trend with the asset trading above its 50-day simple moving average ($20.5). After recording short-term gains earlier this month, the asset is trying to regain momentum past two weeks of negative price action. Its Bollinger Bands are currently wide as the price volatility increases near the $22 mark. Price action is trending equal to the indicator’s mean line.
Support and Resistance Levels
The indicator’s bottom line provides support at $19.7 while the upper limit presents a resistance level at $24.5. Its RSI has started to climb above neutral zone reflecting resumption of buying activity. If SOL successfully breaches through the $24.5 barrier in near term, it may encounter next resistance at $27.5.
The positive news from the SEC and the increased acceptance of cryptocurrency in different sectors have contributed to the positive sentiment in the crypto market, as traders and investors continue to monitor the potential approval of a Bitcoin spot ETF by the SEC.
I have been featured in numerous publications, both online and offline, and am a regular speaker at industry events. I am also the founder of Crypto University, an online educational platform that helps people learn about cryptocurrencies and blockchain technology. In addition to my writing and teaching career, I am also an active investor in the cryptocurrency space. I have made investments in some of the leading projects in the space, and my portfolio has outperformed the market by a wide margin