Crypto Market Surges Ahead of Bitcoin ETF Decision

5 views 3:54 am 0 Comments January 1, 2024

The cryptocurrency market has once again captured the attention of investors and enthusiasts alike, with the recent surge in popularity of memecoins and non-fungible tokens (NFTs).

While the anticipation surrounding the approval of bitcoin exchange-traded funds (ETFs) has dominated headlines in the crypto space, it is the altcoins, such as dogwifhat, that have been generating significant gains, Bloomberg reported Wednesday (Dec. 20).

These speculative tokens have witnessed jumps of over 1,000% within a matter of days, attracting investors with their low trading prices, according to the report.

As the market experiences a resurgence, larger tokens like Solana and Avalanche have also seen a surge in value, making them some of the top gainers this year, the report said.

Altcoins, characterized by their unique and often quirky concepts, have become the latest trend in the crypto market, per the report. Memecoins, like dogwifhat, have seen price surges reminiscent of the last bull market over two years ago.

While memecoins and NFTs lead the recent gains in the crypto landscape, bitcoin has also seen a positive price movement, according to the report. Trading at its highest price in over a week, bitcoin rose by as much as 4.2% to reach $44,294.

This surge in price comes as the Securities and Exchange Commission (SEC) faces a deadline of Jan. 10 to approve or reject bitcoin ETFs, the report said. The anticipation of ETF approval, coupled with the recovery of FTX claims, has contributed to the positive sentiment surrounding crypto.

The FTX claims, which have seen an increase in value, are trading above 50 cents to the dollar, indicating a rally in digital assets, per the report.

It was reported on Dec. 4 that bitcoin’s price had topped $41,000 for the first time in 20 months, having climbed steadily during the previous weeks. Observers said at the time that the crypto market could be turning a corner.

On Monday (Dec. 18), Greyscale Investments CEO Michael Sonnenshein said that the Securities and Exchange Commission (SEC) should approve all applications for spot bitcoin ETFs simultaneously to create an even playing field for investors.

Grayscale is one of more than 10 companies trying to get a spot bitcoin ETF debuted.