Why is Bitcoin price volatile today?
According to cointelegraph market update report,
Bitcoin price is showing an uptick in volatility as traders position for the SEC’s Jan. 10 decision on spot BTC ETFs.
Price action and frequent fluctuation at the $47,000 level reflects traders’ indecision on Jan. 9. While the market has benefitted from the expectation of a spot BTC ETF approval, there are traders who anticipate the event to be a buy the rumor, sell the news-style event.
Let’s look into the reasons why Bitcoin price is volatile today.
Spot BTC ETF momentum boosts market sentiment
Despite a bevy of macro headwinds, Bitcoin price continues to push higher, with volatility and open interest increasing. On Jan. 8, all spot Bitcoin ETF applicants officially filed the final step in the process.
Now the Securities and Exchange Commission (SEC) is free to potentially approve the spot Bitcoin ETFs.
Former SEC Chairman Jay Clayton noted there is nothing left for the SEC to decide and approval is expected, as a rush of amended S-1s were trickling through on Jan. 9.
While some analysts believe the Bitcoin price is pointing towards a breakout to $50,000, BTC has more than doubled the 2023 returns of gold and the momentum has continued in 2024. MicroStrategy CEO and Bitcoin bull Michael Saylor believes a spot Bitcoin ETF would be the biggest to happen to all finance since the S&P 500 was launched.
The positive sentiment around Bitcoin led the BTC market cap to surpass Berkshire Hathaway on Dec. 5, 2023 and it has remained the 10th-biggest asset by that measure.
Despite BTC’s strength, the SEC continues to proceed cautiously, reissuing a crypto FOMO warning on Jan. 6. On Jan. 8, the SEC released another warning on crypto, despite approval seeming imminent.
Crypto assets are a high-risk investment. You should consider whether you understand the possibility of losing money due to leverage. None of this post should be considered as investment advice! Always DYOR before engaging in any crypto venture!
