Bitcoin has been making waves in the financial world, with its price reaching $46,331 (roughly Rs. 38.4 lakh) on Thursday, January 11. This was followed by a green signal from the US Securities and Exchange Commission (SEC) for 11 Bitcoin applications, including ETFs from Blackrock, Fidelity, and Invesco. The crypto community worldwide is buzzing with excitement over this development, although Bitcoin did not immediately react to the news. However, the price chart is beginning to reflect the changes, indicating potential profits for investors.
Meanwhile, Ether also saw a significant increase in value, with a 9.99 percent profit on Thursday. The price of ETH is now at $2,606 (roughly Rs. 2.16 lakh), its highest level in 20 months. According to Edul Patel, CEO of Mudrex, the SEC’s decision to approve 11 spot Bitcoin ETFs reflects a growing acceptance and recognition of digital assets in traditional financial markets. This move is expected to bring about increased adoption, liquidity, and overall market maturity, and marks a shift in the perception of cryptocurrencies from a niche asset class to one gaining mainstream acceptance.
ETFs, or Exchange Traded Funds, track the value of an asset and trade on traditional market exchanges instead of crypto exchanges. This allows people to engage in Bitcoin trading without the need to register on a crypto exchange. The BTC ETFs approved by the SEC will be available on traditional exchanges such as NYSE Arca, Nasdaq, and Cboe BZX Exchange in the US. As news of the ETF approvals broke, majority of altcoins, including Binance Coin, Ripple, Cardano, Avalanche, Dogecoin, Polkadot, Tron, and Polygon, showed gains, while others like Chainlink, Shiba Inu, Litecoin, Bitcoin Cash, Cosmos, and Uniswap were not immediately affected.
According to Ryan Lee, Chief Analyst at Bitget Research, the future price movement of Bitcoin will also be impacted by further capital inflows into Bitcoin ETFs. The abundance or scarcity of funds will play a crucial role in market sentiment and price fluctuations, determining whether Bitcoin prices continue to rise or experience a decline. This event may trigger intense market volatility, and investors should closely monitor the market’s reaction post-ETF approval, as well as the flow of funds, to better formulate their investment strategies.
While some cryptocurrencies suffered minor losses on Thursday, the overall crypto market capitalization stood at an estimated $1,46,01,628 crore (roughly Rs. 1,46,01,628 crore) as per CoinMarketCap, showing a 2.77 percent increase in market value over the past 24 hours.
It is important to note that cryptocurrency is a digital currency with no regulation, not legal tender, and carries market risks. The information in this article is not intended as financial or trading advice and does not represent any endorsement or recommendation from NDTV. NDTV is not responsible for any losses arising from investments based on perceived forecasts, recommendations, or other information in the article. Please do your own research before making any investment decisions.
For the latest news from the Consumer Electronics Show 2024, visit Gadgets 360’s CES 2024 hub.
