5 Altcoins to Watch After Fake Bitcoin ETF News! - Kriptokoin.com

Surprisingly, the Bitcoin and altcoin market witnessed an unexpected rise and subsequent correction following a fake announcement by the U.S. Securities and Exchange Commission (SEC) regarding the approval of the spot Bitcoin ETF. Traders and investors were left in a state of confusion after the news spread prematurely on the social media platform X on Tuesday, January 9, 2024.

Altcoin prices rise on Bitcoin ETF announcement

In contrast to the market sentiment around the U.S. Securities and Exchange Commission's (SEC) potential approval of the spot Bitcoin ETF, traders and investors in the crypto space were subjected to unnecessary confusion when the approval announcement on Tuesday, January 9, 2024, was shared early on the social media platform. In this regard, on-chain data shows a change in trading dynamics between Bitcoin (BTC) and several altcoins.

👀📊 > All eyes of the #crypto community shifted toward $BTC after the #SEC's false announcement of #BitcoinETF approvals. However, it has been #altcoins that have quickly seen major surges despite #Bitcoin declining as low as $45.4K. Though a multi-day #altcoinparty

(Cont) 👇 pic.twitter.com/qtAw2Ugi7t

— Santiment (@santimentfeed) January 10, 2024

On-chain data from Santiment reveals a remarkable trend following the fake announcement. As reported by Kriptokoin.com, Bitcoin's price initially rose to $47,900 but quickly fell to $45,500, triggering liquidations that exceeded $140 million within hours. Surprisingly, the impact on certain altcoins, including Ethereum (ETH), HEX, AAVE, Lido DAO (LDO), and PEPE, challenged the typical correlation with the price of Bitcoin. These altcoins have experienced an uptrend despite Bitcoin seeing a 3% decline, indicating a rare deviation from established market dynamics.

What is the meaning of these events?

As the market recovers from the fake ETF approval announcement, Ethereum is emerging as a resilient player, showing a 3.35% price increase in the last 24 hours. The Lido DAO Price (LDO) is overshadowed, recording a significant gain of 19% over the same period. The cryptocurrency community is now cautiously observing whether this altcoin rise will continue regardless of Bitcoin's fate after the official spot ETF approval is announced. Historically, sustained bull runs for Bitcoin often lead to a significant influx of funds into altcoins, signaling a potential shift in market dynamics.

The recent events serve as a stark reminder of the cryptocurrency market's susceptibility to misinformation and early announcements. As the community awaits the official announcement of the Bitcoin spot ETF approval, altcoins' resilience to market turbulence raises intriguing questions about their future trajectory. Time will tell if the altcoin's rise will be disproportionate to BTC if the spot ETF approval is officially announced. However, historically, a sustained bull run for Bitcoin has been positive for the market.

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