The fake approval of the Bitcoin ETF greatly benefits Ethereum!

The crypto market has experienced intense turbulence in recent days, following a false announcement that teased the imminent approval of a Bitcoin spot ETF by the SEC. While this misleading information has disenchanted Bitcoin investors, it has paradoxically energized Ethereum and many altcoins, which have seen their trading volumes explode upwards.

Ethereum and Altcoins Boosted by Optimism over Bitcoin ETFs

Despite the Bitcoin ETF illusion turning against the queen of crypto, Ethereum cheerfully crossed the symbolic threshold of $2,400, with a 2.8% increase. More importantly, the decentralized cryptocurrency benefited from very high trading volumes, indicating growing investor interest in this digital asset with multiple use cases.

Many altcoins like Avalanche, Solana, or Cardano also jumped between 3 to 8% simultaneously. This bullish surge reflects the market participants’ optimism regarding a future approval of a Bitcoin spot ETF in the United States. Such a decision would pave the way for massive inflows of institutional capital, benefitting the entire crypto ecosystem.

BTC Struggles to Bounce Back in a Volatile Market

On the contrary, Bitcoin is struggling to recover from its speculative excesses, after falling by more than $2,000 within 24 hours. Briefly surpassing the $47,000 mark, the original cryptocurrency fell back below $45,000, reflecting the market’s nervousness after the ETF hoax.

Some are hoping for support around $46,200, but caution remains advisable. Bitcoin is now trading around $45,000, far from its all-time high in November 2021. According to many analysts, this could be a “bear market rally,” a faint uptick in a sustained bear market. Others are more optimistic about a lasting rebound.

Bitcoin’s Dominance Erodes in Favor of Ethereum

These sharp jolts demonstrate the gradual emancipation of Ethereum and altcoins from Bitcoin, despite its still overwhelming dominance, accounting for about 53% of the crypto market cap. Boosted by record volumes, Ethereum and others are now progressing according to their own dynamics, little affected by Bitcoin’s transient downturn.

This tumultuous episode reminds us of the volatile nature of the crypto Wild West, prone to extreme fluctuations based on false news or unverified rumors. It also marks Ethereum’s spectacular breakthrough, which is emerging as the most serious alternative to Bitcoin, even if there is still a long way to go to dethrone the crypto veteran. The coming months promise to be exciting, with the prospect of a “flippening,” a reversal of the established order!