In the dynamic world of cryptocurrency, the spotlight is firmly on Bitcoin’s potential Exchange Traded Fund (ETF) approval by the US Securities and Exchange Commission (SEC). As anticipation grows, the recent surge in Bitcoin’s price to around $47k is not just a standalone event but a catalyst that breathes new life into altcoins like Shiba Inu (SHIB). In this article, we’ll explore the unfolding scenario and how millions in Bitcoin ETF profits could potentially flow into SHIB.
Bitcoin ETF and Market Dynamics
The imminent approval of a spot BTC ETF by the SEC is a hot topic, with potential far-reaching effects on the crypto market. Bitcoin’s recent rally, fueled by ETF speculation, has ignited interest not only in the flagship cryptocurrency but also in altcoins like SHIB. Despite the recent market correction, SHIB has shown resilience, gaining momentum in the wake of BTC’s upward trajectory.
Shiba Inu’s Response to Market Shifts
Following a temporary setback that saw Shiba Inu (SHIB) losing its post-decimal zero in December, the anticipation of a spot BTC ETF has injected fresh vigor into the market. In the last 24 hours alone, SHIB has experienced a 5% rally. However, it is essential to note that SHIB still faces challenges, with an 11.1% weekly decrease and over 7% decline since the previous month.
Potential Impact on SHIB from BTC ETF Profits
Bitcoin’s remarkable 180% surge since January 2023 has created a stark contrast with Shiba Inu’s relatively modest 9% gain during the same period. However, the prospect of a spot BTC ETF approval introduces a new dynamic. If the SEC gives the green light in the coming days, a surge in crypto prices may follow.
BTC’s influence on the market is well-established, often triggering a ripple effect. In the event of a spot BTC ETF approval, Bitcoin could reach unprecedented highs. Investors, having booked substantial profits with Bitcoin, might diversify their gains into promising projects like Shiba Inu (SHIB) and other popular altcoins. This influx of funds has the potential to reshape SHIB’s trajectory and contribute to the broader crypto market’s positive momentum.
Waiting on the SEC Decision
Despite the excitement surrounding the potential approval, the US SEC is yet to announce its decision officially. Bloomberg analysts estimate a high probability of a positive outcome, suggesting a 95% chance that the SEC will approve one or more spot BTC ETFs in the near future.