Going against the market sentiment around the U.S. Securities and Exchange Commission’s (SEC) potential approval of the spot Bitcoin ETF, traders and investors in the crypto space were subjected to unnecessary confusion with what could be a premature sharing of the approval announcement on social media platform X on Tuesday, January 9, 2024. In this context, on chain data shows that there were change of dynamics in trading between Bitcoin (BTC) and several altcoins.
Also Read: XRP ETF Filing To Come Within Weeks After Bitcoin ETF Approval?
According to on chain data from Santiment, there was a clear trend in favor of price rise for few altcoins, as the market realized that the announcement on Bitcoin ETF approval was actually fake. While BTC Price saw a high of $47,900 following the fake announcement, it quickly subsided to a low of $45,500. Earlier, CoinGape reported that the fake announcement to liquidations worth over $140 million in the space of few hours.
However, the price drop did not reflect in altcoins Ethereum (ETH), HEX, AAVE, Lido DAO (LDO) and PEPE. This was one of rare instances in the recent past, in which the altcoin market deviated from the strong correlation with the BTC Price. Data showed that the rise in these altcoin prices continued despite the Bitcoin price drop by 3%.
While Ethereum, the second placed cryptocurrency in terms of market value, is showing resilience with a 3.35% rise compared to the last 24 hours, the Lido DAO Price (LDO) gained by a massive 19% during the same period. It remains to be seen if the altcoin rally would survive disproportionate to BTC if and when the spot ETF approval is officially announced. However, it has been observed historically that a sustained bull run for Bitcoin was often followed by a significant flow of funds into altcoins.
Also Read: X Confirms US SEC Account Was Hacked, After Bitcoin ETF Fake Announcement
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