Crypto wrap: High volatility in market after SEC's approval of Bitcoin ETFs

The crypto market witnessed many highs and lows during the week. Bitcoin touched its highest level in 22 months and soon wiped off the gains

The last week has been highly volatile for the cryptocurrency market. Bitcoin and Ethereum touched their highest levels in about two years but soon gave up the gains. The main news in the market was the approval of Bitcoin Exchange Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC).  

"Crypto markets had a week of heightened volatility as the spot Bitcoin ETF Approval drama reached its crescendo," said Parth Chaturvedi, investments lead at CoinSwitch Ventures.  

"To everyone's surprise, the official account of the SEC on X was hacked and came out with the approval tweet, sending markets into an upward tizzy and Bitcoin shooting past $47,000. However, within the hour, the SEC clarified that the approvals hadn't come through, resulting in a steep correction and Bitcoin price back to around $45,000."

The next day, on January 11, the SEC officially approved 11 spot Bitcoin ETFs, sending the largest token by market cap to almost $49,000, the highest in 22 months. 

This, too, did not last for long.  

"This bullish momentum faced challenges, with BTC subsequently calming above $45,000 amid regulatory developments," said Rajagopal Menon, vice president at WazirX. 

The news that led to the sell-off in the market was that Vanguard and other major asset managers blocked access for their clients to these newly approved ETFs.

On Friday, Bitcoin was trading at $46,000 and Ethereum was at $2,614. Menon added the daily volume of over $100 billion shows that the market continues to be resilient. 

According to Edul Patel, chief executive officer at Mudrex, the resistance for Bitcoin stands at $47,300, while support holds at the $45,500 level.