Bitcoin shows some surprising downside as a spot ETF decision approaches, and altcoins rally higher as ETH turns bullish.
There was high drama on Jan. 9 as the United States Securities and Exchange Commission tweeted that spot Bitcoin (BTC) exchange-traded fund applications were approved but later said that the SEC’s social account was hacked and that no ETFs had been approved.
After the hacked tweet was sent out, Bitcoin quickly surged to about $48,000 but then gave back the gains and slipped to $46,000 within a few minutes. Noting the muted response, trading firm QCP Capital said that the approval is “mostly priced in and there may not be a huge rally post the approval.”
Although the event may boost volatility in the short term, the long-term trend could remain intact. Even if the markets sell-off after one or more spot Bitcoin ETFs are greenlit, the downside is likely to be limited as the long-term investors may view the dips as a buying opportunity.
