The cryptocurrency market rebounded strongly on January 5, driven by renewed optimism surrounding the expected approval of a Bitcoin spot trading fund (ETF) by the US Securities and Exchange Commission (SEC). Investor sentiment has been fueled by speculation and vague X posts suggesting an imminent approval, with reports spreading on social media pointing to January 5 as the crucial day.
The cryptocurrency market is recovering thanks to investor optimism
Notably, Jacqueline Melinek, chief cryptocurrency correspondent at TechCrunch, contributed to the fervor with a widely shared tweet, citing “sources very close to the matter” that hinted at “multiple” ETF approvals scheduled for Friday. . However, analysts, including Bloomberg's James Seyphart, urged caution, dismissing the January 5 speculation as mere “hype” and anticipating the SEC's decision between January 8 and 10.
Although opinions differ on the approval timeline, all major cryptocurrencies saw a notable rally, underscoring investors' keen interest in the potential green light for the Spot Bitcoin ETF.
Additionally, some market experts attribute this rebound to investors taking advantage of the recent market decline, which resulted in part from concerns about the SEC rejecting Bitcoin ETF applications, as suggested in a Matrixport report earlier this the week.
A Matrixport report warned that a potential rejection could see Bitcoin's price drop to $36,000. However, the buoyant market response following the recent sell-off in the cryptocurrency market suggests that investors view the current decline as a strategic buying opportunity. This surge in optimism, coupled with an attractive price drop after a major market correction, has injected new energy into the cryptocurrency scene.
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A closer look at cryptocurrency prices
The market regained momentum as the cumulative market capitalization reached $1.72 trillion, supported by gains in the prices of major cryptocurrencies. However, as of writing on Friday, January 5, the total cryptocurrency market volume is down 2% from yesterday.
Looking at the prices of individual cryptocurrencies, the price of Bitcoin is fixed at $43,400. It touched a high of $44,814 and a low of $43,116 in the last 24 hours. Meanwhile, Ethereum price lost 1.8% and was trading at $2,224 as I write.
Among other cryptocurrencies, Solana's price fell 4% to $97.96, with a trading volume of $3.24 billion. Additionally, Dogecoin price fell by 1.8% and was trading at $0.0819 at the same time.
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