Crypto Market Recovery: Here’s Why BTC, ETH, SOL, & DOGE Prices Are Rising

The crypto market rebounded with vigor on January 5, propelled by renewed optimism surrounding the anticipated approval of a Spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Investors’ sentiments have been fueled by speculation and cryptic X posts suggesting an imminent approval, with reports circulating on social media pointing to January 5 as the decisive day.

Crypto Market Recovers On Investors’ Optimism

Notably, TechCrunch senior crypto reporter Jacquelyn Melinek contributed to the fervor with a widely shared tweet, citing “sources extremely close to the matter” who hinted at “multiple” ETF approvals scheduled for Friday. However, analysts, including Bloomberg’s James Seyffart, have urged caution, dismissing the January 5 speculation as nothing but a “noise” and anticipating the SEC’s decision between January 8 and January 10.

Despite differing opinions on the approval timeline, all major cryptocurrencies have experienced a notable rally, underscoring investors’ keen interest in the potential green light for the Spot Bitcoin ETF.

In addition, some market pundits attribute this resurgence to investors capitalizing on the recent market dip, triggered in part by concerns over the SEC rejecting Spot Bitcoin ETF applications, as suggested in the Matrixport report earlier this week.

The Matrixport report had forewarned that a potential rejection could drive BTC down to $36,000. However, the market’s buoyant response after the recent crypto market selloff indicates that investors see the current dip as a strategic buying opportunity. This surge in optimism, coupled with the attractive lower prices following a significant market correction, has injected fresh energy into the cryptocurrency landscape.

Also Read: OpenAI Explores Content Licensing Deals With Publishers Amid NYT Legal Woes

A Closer Look Into The Crypto Prices

The market regained momentum with the cumulative market cap touching $1.72 trillion, fuelled by gains in major crypto prices. However, as of writing on Friday, January 5, the total crypto market volume was down 2% from yesterday.

Looking at the individual crypto prices, the Bitcoin price is steady at $43,400. It has touched a high of $44,814 and a low of $43,116 in the last 24 hours. Simultaneously, the Ethereum price a loss of 1.8% and exchanged hands at $2,224 during writing.

Among other cryptos, the Solana price was down 4% at $97.96, with its trading volume at $3.24 billion. In addition, the Dogecoin price was down 1.8% and traded at $0.0819 at the same time.

Also Read: SEI Price Dips Amid Panic Selling, How Will SEI Fare In 2024?