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All eyes were on the U.S. Securities and Exchange Commission (SEC) and the crypto Bitcoin due to the potential approval of a spot Bitcoin ETF. On the evening of Tuesday, January 9, 2024, crypto investors and traders were literally caught off-guard. A fake approval announcement posted by a hacker from the SEC’s official account on social media platform X created utter chaos. Subsequent data revealed significant price movements in Bitcoin (BTC) and several altcoins.
Altcoin Prices Surge
According to data shared by Santiment, the market experienced a downturn after it was understood that the announcement regarding the Bitcoin ETF approval was fake, but the price increase in several altcoins did not go unnoticed.
Following the fake SEC announcement, the price of BTC reached $47,900 within minutes, but then quickly fell back to $45,500 after the denial. Futures investors were the most affected by this event. In the short time following the fake news, over $140 million were liquidated in long and short positions.
However, the price drop in Bitcoin did not affect some altcoins, which saw increases. Ethereum (ETH), HEX, AAVE, Lido DAO (LDO), and PEPE pleased their investors by displaying a trend contrary to the market.
Recently, market surges generally occurred in parallel with BTC. This time, in a rare occurrence, some altcoins created a positive outlook for their investors by diverging from the strong correlation with BTC prices.
Despite a 3% drop in Bitcoin prices, the mentioned altcoins continued to experience price increases until the early hours of the day.
Potential Bitcoin ETF Approval
Ethereum, dubbed the king of altcoins, saw a price increase of 3.35% in the last 24 hours, while Lido DAO Price (LDO) reflected an incredible 19% surge to the crypto world during the same period.
In the last 24 hours, the overall volume increased by 16% and reached the level of 3.4 billion dollars. A 114% increase in trading volume indicated that investors were actively buying and selling the altcoin.
After yesterday’s events, it remains unclear how the official announcement of the Spot ETF approval will affect the altcoin rally on BTC. A potential rise could enable Bitcoin to repeat its historical impact on altcoins and support sharp increases.
