Tendency
Bitcoin ETF Could Ignite Altcoins, Not Just Bitcoin. Get Ready for a Ride Through Five Rockets Ready to Soar.
During a tumultuous trading session on Tuesday, Bitcoin (BTC) saw dramatic swings. The volatility was triggered by a social media update from the U.S. Securities and Exchange Commission (SEC) that turned out to be wrong, causing confusion among market participants.
Initially, BTC surged 2.5% to a whopping 19-month high of $47,900. This surge followed a post from the SEC’s official account on X (formerly Twitter), announcing the approval of a Bitcoin cash exchange-traded fund (ETF). The crypto community was abuzz, prematurely celebrating this significant development.
However, things took a sharp turn when it was revealed that the SEC account had been compromised. With SEC Chairman Gary Gensler denying the news, Bitcoin quickly fell by nearly 6%, dropping to a low of $45,100.
Also Read: 4 Cryptocurrencies to Buy Before Bitcoin ETF Approval
Currently, the price of Bitcoin is around $45,503.96, contributing to a global cryptocurrency market cap of around $1.69 trillion, down 2.29% from the previous day, according to data on Binance.
Bitcoin is on the cusp of a major milestone with the halving scheduled for mid-2024. This event, which occurs periodically, cuts mining rewards in half, impacting supply-demand dynamics over time. Considering mining rewards as the sole source of new bitcoins, these halving events often pave the way for notable increases in Bitcoin’s value.
The broader economic scenario also appears to be aligning in Bitcoin’s favor. With high interest rates expected to decline in 2024 or early 2025, and the confluence of the upcoming ETF and halving event, a favorable environment for crypto markets is potentially brewing.
In light of the potential Bitcoin ETF approval, investors might be wondering which cryptocurrencies to focus on ahead of the expected bull run. Based on extensive research, here’s a look at some promising cryptocurrencies:
1. **Ethereum (ETH):**
With a Bitcoin ETF potentially opening the floodgates to institutional investors, Ethereum, the undisputed leader in smart contracts and DeFi, is in a prime position to benefit. The increased interest in crypto as a legitimate asset class could lead savvy investors to venture beyond Bitcoin, seeking higher yields in DeFi protocols and NFT projects built on Ethereum’s solid foundation.
This new wave of capital could breathe new life into the burgeoning DeFi space, increasing transaction volume and user adoption of innovative dApps. Ethereum’s established developer community and strong network effect make it a natural habitat for this influx of activity, potentially pushing ETH toward $4,000 by mid-2024, according to market analysis by influential crypto research firm Arcane Research.
2. **Decentraland (MANA):**
Decentraland, one of the leading metaverse platforms, could be about to see a surge in popularity following the approval of the Bitcoin ETF. Picture this: Bitcoin’s newfound legitimacy sparks broader interest in virtual worlds and blockchain-based economies. Suddenly, Decentraland’s digital landscape becomes a prime destination for brands looking for immersive marketing experiences.
