Crypto market remains volatile as SEC’s decision on Bitcoin approval nears

Crypto market overview: Bitcoin (BTC) holds steady near the $43,400 mark; however, recent assessments advise cautiousness, hinting at a potential delay in reaching a new all-time high. Regarding the overall market status, the global crypto market capitalisation stands at $1.68 trillion, reflecting a 3.0 per cent decline in the past day. Despite this dip, Bitcoin maintains dominance, accounting for 50.4 per cent of the market.

Giving a brief of the crypto market situation, CoinDCX research team said, “During the weekend, the overall crypto market displayed a slight bearish sentiment. BTC traded sideways, currently positioned below the key resistance level at $44,300 and above the incline trendline support at $42,600. The rising BTC dominance contributed to bearish trends in altcoins. ETH witnessed a break below an incline trendline support and is also below the 20EMA Daily, indicating a bearish stance. The support level for ETH is at $2,131, with resistance at $2,390.” 

“Notably, investors are actively speculating on the potential approval of the BTC spot ETF on January 10.” CoinDCX said. 

Underlining the industry sentiment around Bitcoin ETF approval in the US, Parth Chaturvedi, Investments Lead, CoinSwitch Ventures said, “US Bitcoin ETFs seem poised for imminent launch as the exchanges that will list them have submitted revised documents, indicating anticipation of approval from the US Securities and Exchange Commission in the near future. Resonating the positive sentiment, VanEck, an asset management firm, has pledged to allocate 5 per cent of its fund's potential profits to support Bitcoin developers at Brink, contingent upon approval.” 

Rajagopal Menon, Vice President, WazirX, told Republic Business, “Sentiments are in flux within the vast crypto space, with assets like Shiba Inu (SHIB) contending with intricate market dynamics. The number of SHIB addresses underscores the heightened interest and possible shifts in market directions, emphasising the importance of ongoing vigilance in this dynamic crypto environment.”

Shivam Thakral, CEO, BuyUcoin while talking about the dip in Bitcoin’s price said, “The crypto market witnessed profit booking by traders due to which Bitcoin dipped to the $43,000 level while Ethereum slipped to the $2,181 mark. The latest market rally may have triggered profit booking and traders may have created fresh positions to prepare for the next cycle.”

“The market sentiment is extremely positive as there is a lot of news around Bitcoin ETF approval by the SEC. Bitcoin approval will be the biggest market mover in 2024 and make digital assets mainstream across the globe. The market is expected to remain volatile in the coming weeks owing to the macroeconomic factors,” Thakral said. 

Crypto market to remain volatile

As the SEC’s decision around the Bitcoin ETF nears, experts suggest that the crypto market is likely to remain volatile. Edul Patel CEO, Mudrex said, “Bitcoin is likely to maintain a sideways trend within the $43,000 to $44,500 range in the next few days. Ethereum is mirroring Bitcoin's movements, and the approval of Bitcoin ETFs could establish a regulatory framework for Ethereum ETFs. The upcoming week is expected to be volatile, especially with the release of US CPI data on Thursday.”

While Vikram Subburaj, CEO, Giottus also echoed the same sentiment. “BTC dominance is up 5 per cent on the week and is now above 54 per cent. This bearish trend for altcoins will likely continue as we lead into SEC’s decision on BTC spot ETF mid-week. The market will remain volatile in the next 3 days,” said Subburaj. 

In other news, Ethereum's (ETH) validators are stuck waiting several days to withdraw their staked ETH. As per the report, 32 per cent of all ETH waiting to be withdrawn has been requested by Celsius, while 54.7 per cent is from Figment, a staking service that Celsius reportedly uses.