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…
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