On the first Sunday of the new year, the cryptocurrency markets made a relatively calm start, with BTC hovering around the $44,000 mark. Even though weakness in altcoins continues, investors are preparing for the ETF approval/denial in the next 3 days, which could trigger high volatility. The excitement of this event could disrupt the current calm in the coming hours.
Bitcoin (BTC)
BTC, the largest cryptocurrency by market value, is finding buyers at $43,960. The upcoming ETF decision on Wednesday has increased Bitcoin‘s market dominance. We had mentioned a week ago that rumors would stir up the market in the last Sunday of 2023, and that’s what happened with the Matrixport report on January 3rd, showing excessive selling.
At this stage, investors are likely to see more misleading news and volatility triggers. We may witness fake approval/denial news targeting significant liquidation price zones. Key levels for Bitcoin (BTC) are $43,500 and $42,600. The support range between $40,500 and $42,000 still appears strong.
Bitcoin dominance (BTCD) climbed to 52.1%, and the cumulative volume dropped below $50 billion. The cumulative value of cryptocurrencies is anchored at $1.65 trillion.
Current State of Cryptocurrencies
While the cumulative value of cryptocurrencies remains stable, the strengthening of BTC market dominance can be reasonably seen as we enter the ETF approval/denial period. Investors should expect further weakness in altcoins and witness an increase in BTC interest along with its price.
A potential ETF approval could lead to a major uptrend in BTC, targeting above $50,000. This suggests possible double-digit losses in altcoins. In the past 7 days, the biggest gainers among the top 100 cryptocurrencies were AKT, GMT, and TIA Coin, with price increases ranging from 22% to 38.4%, which is notable.
GMT Coin gained over 30% daily, and investors should be prepared for possible fluctuations in the coming hours. On the losing side of the week, there are HNT, BONK, IOTA, and SATS. For meme tokens like BONK Coin, the current pullback is not surprising and could deepen. MINA Coin is in fourth place with an 18% weekly loss, and the prices continue to balance out following the excessive demand.
