Cointree Crypto Market Update - January 10th 2024
Market report for traders
🔮 BTC and altcoins
Over the last 7 days, Bitcoin ends at AU$68,301, moving +0.03% at the time of writing. Ethereum ends at AU$3,541, moving +0.03% week-on-week. And in other altcoin movements, Avalanche drops -18.06%, Cardano -18.14%, and Solana -11.43%.
🗞 What’s happening in the news?
Welcome back to our crypto market update for 2024!
We're thrilled to kick off another promising year for crypto. With an SEC ETF approval potentially on the horizon and the eagerly anticipated Bitcoin halving just a few months away, there's excitement in the air amongst the crypto community about what the year might bring.
This week in the world of crypto: A recent fake-news incident regarding the U.S. Securities and Exchange Commission (SEC) led markets to spike and drop, serving as a stark reminder of the crypto market's sensitivity to regulatory news. So what happened?
The SEC's X (formerly Twitter) account was compromised, leading to a false announcement about the approval of Bitcoin ETFs. The compromised @SECgov X account had tweeted: "Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges. The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection."
This misleading tweet momentarily sent Bitcoin prices on a wild ride, surging to a 19-month high, then sharply declined when the SEC clarified the misinformation. This incident illustrates the profound impact regulatory developments can have on the market, and gives us some insight into how the market could react if the SEC does end up granting approval for a Bitcoin ETF.
In another fake-news incident, Dogecoin experienced a significant price fluctuation due to a false rumour about the death of its mascot. This misinformation led to a 9% jump in DOGE's price, which later corrected itself. The episode didn't just cause price swings but also reignited discussions about market manipulation and the speculative nature of cryptocurrencies.
📖 What we’ve been reading
100 days to the halving — 5 things to know in Bitcoin this week “Bitcoin is dominated by the ETF narrative, but that is far from the only thing impacting BTC price action this week.” Read more
Stablecoin inflows to exchanges spike as traders prepare for spot Bitcoin ETF decision “Stablecoin inflows to exchanges swell as investors prepare for volatility leading into the SEC’s decision on a spot Bitcoin ETF.” Read more
If a Bitcoin ETF Is Approved, Here’s What May Happen “The SEC is on the brink of approving a first spot bitcoin ETF in the U.S. after 10 years of failed applications.” Read more
Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.