Despite the SEC's approval of all 11 spot Bitcoin ETF applications on January 10, Bitcoin's price continues to exhibit volatility. The market witnessed a whipsaw effect, reminiscent of the previous day's fluctuations triggered by an erroneous tweet from the regulator. Initial positive sentiment arose as fresh filings hinted at ETF approvals, leading Bitcoin to rally to $46,437, further fueled by Cboe's listing approval. However, skepticism lingers among some traders, anticipating a buy-the-rumor, sell-the-news scenario and questioning the likelihood of Bitcoin surpassing $48,000 post-approval.
The SEC's social account hack on January 9, falsely reporting spot ETF approvals, resulted in up to $1 billion in wiped-out open interest in the Bitcoin futures market. As the truth emerged, criticism mounted, likening the incident to a pump-and-dump scheme. The subsequent market impact may explain the relatively muted price action on January 10. Analysts speculate that the SEC could potentially face market manipulation law violations, leading some U.S. senators to call for a report from SEC Chair Gary Gensler on the breach by January 15.
On January 10, new information on the SEC's website revealed three substantial Bitcoin sell orders ranging from $46,100 to $48,000. Traders interpreted this as a signal of limited upside potential for BTC price. While some analysts predict a breakout to $50,000, others highlight Bitcoin's impressive performance, more than doubling its 2023 returns, and ongoing momentum in 2024. Michael Saylor, MicroStrategy chairman and Bitcoin advocate, previously asserted that a spot Bitcoin ETF would be a monumental event, comparing it to the significance of the S&P 500 launch in the world of finance.
