Benzinga - by Mehab Qureshi, Benzinga Staff Writer.
Major cryptocurrencies on Monday evening traded mixed as the long-anticipated approval of a spot exchange-traded fund (ETF) resulted in a “sell-the-news” event.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin (CRYPTO: BTC) | +0.75% | $42,619 |
| Ethereum (CRYPTO: ETH) | +0.81% | $2,517 |
| Dogecoin (CRYPTO: DOGE) | -0.11% | $0.080 |
What Happened: The term “Sell the news” is commonly used in capital markets to describe the phenomenon where asset prices, leverage, and sentiment escalate leading up to a bullish event, only to experience a subsequent decline shortly after.
On Monday, BTC retraced to a low of $41,600 before rebounding, following a brief surge to a two-year high above $49,000. This surge occurred as the first-ever spot Bitcoin ETFs began trading in the U.S. last Thursday.
The new spot BTC ETF is anticipated to attract substantial capital from various crypto products, as outlined in a recent research report by J.P. Morgan. Despite the Securities and Exchange Commission's (SEC) cautious approval of spot bitcoin ETFs, the market’s response has been relatively subdued. The attention has now turned to the potential inflow of capital into these new ETFs.
"We are skeptical of the optimism shared by many market participants at the moment that a lot of fresh capital will enter the crypto space as a result of the spot bitcoin ETF approval," analysts led by Nikolaos Panigirtzoglou wrote.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Flare (CRYPTO: FLR) | +35.65% | $0.023 |
| Blur (CRYPTO: BLR) | +14.54% | $0.65 |
| Sei (CRYPTO: SEI) | +13.69% | $0.82 |
The global cryptocurrency market cap now stands at $1.68 trillion, showing a 0.58% decrease in the past 24 hours.
Stock futures declined on Monday night as investors awaited further data and bank earnings that will offer more insight into the state of the American consumer. Futures linked to the Dow Jones Industrial Average dropped 50 points, equivalent to 0.1%, while S&P 500 futures and Nasdaq 100 futures decreased by more than 0.1% and 0.2% respectively.
Investors are keeping an eye on the upcoming December retail sales data, expected to be released on Wednesday, as it may spark concerns about a potential economic slowdown if U.S. consumer spending shows signs of cooling. Economists surveyed by FactSet project a modest 0.2% increase for the month, slightly below the 0.3% rise seen in November.
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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe has observed that the Bitcoin ETF has yielded a negative return since its inception.
"The Bitcoin ETF has provided a massive net inflow on the first few days. More than $600 million on the first day. The real impact of the ETF will be shown in the coming few years. A mega bullish event."
The #Bitcoin ETF has provided a negative return since the start.The #Bitcoin ETF has provided a massive net inflow on the first few days. More than $600 million on the first day.
The real impact of the ETF will be shown in the coming few years.
A mega bullish event.
— Michaël van de Poppe (@CryptoMichNL) January 15, 2024
Top BTC ETFs Since Inception
| Bitcoin ETFs | Gains (Since Inception) +/- | Price (Recorded 9:30 p.m. EST) |
| ARK 21Shares Bitcoin ETF (ARKB) | -12.3% | $43.86 |
| Fidelity Wise Origin Bitcoin Fund (FBTC) | -8.7% | $38.35 |
| VanEck Bitcoin Trust (HODL) | -10.1% | $49.62 |
Pseudonymous analyst DonAlt has suggested that BTC is poised for a corrective movement after reaching the $60,000 mark, anticipating a rapid and forceful correction. Post this anticipated pullback, DonAlt foresees a subsequent surge driving BTC to potentially reach as high as $90,000.
"If you go straight up, I think $60,000 would be a really good resistance… I think that pullback would be quite aggressive, quite quick and one that you absolutely should be buying…If we hit $60,000, any pullback that you get should be a buy because at that point, we have tested $60,000 three times. I think then on the next test it wouldn't hold and then you would go to $70,000, $80,000 [or] $90,000."
Santiment, an on-chain analytical firm indicates that in anticipation of the recent Bitcoin ETF approvals, larger Bitcoin wallets were observed to be moving older coins at a heightened pace, leading to a considerable decrease in the average age of coins held in these wallets.
"There are mild signs that this continued movement of older coins is finally done for the time being. This would increase the likelihood of crypto’s bull cycle finally halting for now. With this said, a few large whales could move a large number of coins, further pushing down the BTC mean dollar invested age curve and create another wave to test $45K & perhaps $50K once again."
Photo by FellowNeko on Shutterstock
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