Fake ETF Approval Triggers Market Volatility
A false announcement from the SEC claiming approval for a Spot Bitcoin ETF caused turmoil in the crypto market, impacting Bitcoin and Ethereum Open Interest. This led to a volatile day for Bitcoin prices and a significant drop in Bitcoin Futures Open Interest.
However, while Bitcoin OI slipped, Ethereum Futures Open Interest experienced an unprecedented surge, suggesting a shift in market sentiment.
Ethereum OI Surges Amid SEC Controversy
The SEC became embroiled in controversy when an unauthorized post falsely claimed approval for a Spot Bitcoin ETF. This sparked excitement among crypto enthusiasts, but SEC Chair Gary Gensler clarified that no such approval had been granted, revealing a compromised official handle.
In response, the crypto community expressed dissatisfaction and accused the SEC of market manipulation. Bitcoin Futures Open Interest dropped by 3.29% over the last 24 hours, reflecting the impact of the misleading information on investor confidence.
On the other hand, Ethereum Futures Open Interest surged by 12.08% over the past 24 hours, reaching 3.33 million ETH or $8.05 billion. Binance and Bybit also reported significant increases in Ethereum OI.
Market Turbulence and Price Changes
The recent SEC chaos contributed to a downturn in the crypto market. The global crypto market cap decreased by 1.14% to $1.71 trillion, while the trading volume increased by 2.81% to $83.95 billion.
Bitcoin’s price fell by 3.74% to $44,915.91 after reaching a high of $47,898.70 in the last 24 hours. In contrast, Ethereum’s price increased by 3.17% and traded at $2,371.42, with a high of $2,410.96.
This discrepancy in performance suggests a shift in investor sentiment. While Bitcoin deals with the aftermath of the fake ETF approval incident, Ethereum appears to be gaining momentum and attracting renewed interest and investment in the crypto space.
Hot Take: Ethereum’s Resilience Highlights Market Shift
The recent SEC controversy surrounding a fake ETF approval has had contrasting effects on Bitcoin and Ethereum. While Bitcoin experienced a drop in Open Interest and price, Ethereum showed resilience and witnessed a surge in Open Interest. This indicates a shift in market sentiment, with investors turning their attention towards Ethereum. As Bitcoin grapples with the aftermath of the misleading information, Ethereum’s performance highlights its growing appeal and potential for further growth in the crypto market.
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