The recent approval of the first bitcoin spot exchange-traded fund (ETF) in the United States by the Securities and Exchange Commission (SEC) has reverberated across the cryptocurrency landscape, causing a significant rise in several altcoins, with ethereum Classic (ETC) taking center stage.
Often overshadowed by its better-known sibling, ethereum, ETC has emerged as the clear winner following the groundbreaking news, experiencing an impressive surge of over 31% in the past seven days.
ethereum Classic Trading Volume Increase
Since the SEC's approval of the Grayscale bitcoin ETF on January 10, ethereum Classic has skyrocketed by a staggering 30%, currently holding a trading value of around $26. This meteoric rise has been accompanied by a notable 270% increase in trading volume, reaching a substantial $1.8 billion.
Such strong numbers highlight a palpable rise in investor confidence, suggesting the potential for further gains in the near future.
While bitcoin itself witnessed a modest price rise, briefly reaching $47,000, ethereum stole the show by breaking a 20-month barrier and surpassing $2,600.
ethereum Classic currently trading at $26.36 on the daily chart: TradingView.com
This notable 10% increase in just 24 hours has positioned ethereum at its highest value since May 2022. Analysts attribute this impressive performance to ethereum's strong underlying technology and recent network upgrades, cementing its status as a favorable option for investors after bitcoin.
The approval of crypto-and-bitcoin-etf-approval/” target=”_blank” rel=”nofollow”>bitcoin Spot ETF It is not the only catalyst for this altcoin rally; The long-awaited bitcoin halving event, scheduled for the end of the year, is also playing a pivotal role in reinforcing bullish sentiment.
ETC price action in the weekly timeframe. Source: Coingecko
This event, which occurs approximately every four years, involves a reduction in the number of newly minted Bitcoins and has historically coincided with price appreciation in the cryptocurrency market.
The confluence of these factors has created a perfect storm for ethereum Classic, propelling it towards the coveted $30 mark.
Strong ETC performance
Industry experts anticipate that this milestone could be reached soon, driven by the impressive trading volume and market cap of ethereum Classic, which has surged 34% to cross the $4 billion mark since the news broke. of the ETF.
However, amid the euphoria surrounding this increase, it remains crucial to recognize theethereum-classic-falls-more-than-4-in-24-hours” target=”_blank” rel=”nofollow”> inherent volatility of the cryptocurrency market. While the approval of the bitcoin spot ETF and the impending halving event offer promising prospects, unforeseen factors can quickly alter market dynamics.
The recent rise of ethereum Classic serves as a compelling testament to the interconnectedness of the cryptocurrency market and the substantial impact of major regulatory decisions.
As the industry continues to evolve, it will be intriguing to watch how other altcoins respond to these developments and whether ethereum Classic can maintain its leadership in this post-ETF era.
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