The long-awaited arrival of a Bitcoin spot ETF in the US has sent cryptocurrency prices soaring, with Ethereum Classic leading the way among altcoins.Thank you for reading this post, don't forget to subscribe!
After languishing around $20 for several months, Ethereum Classic (ETC) has surged by more than 50% over the past seven days, currently hovering around $29.45 and just a breath away from reclaiming the $30 mark.
This impressive rally comes amid a broader market rally due to the historic approval of the Bitcoin Trust ETF by the Securities and Exchange Commission (SEC) on January 10, 2024.
ETC price action over the past week. Source: Coingeco
Ethereum Classic surge: a combination of factors
ETF-inspired optimism: The approval of a Bitcoin spot ETF marks an increase in institutional interest in the crypto market, a development that traditionally benefits the entire ecosystem, including altcoins like ETC. This optimism is reflected in the strong performance of other major cryptocurrencies, with Ethereum seeing a 10% rise and briefly hitting a 20-month high above $2,600.
The unique appeal of Ethereum Classic: Compared to its Ethereum counterpart, Ethereum Classic boasts a smaller market cap and lower transaction fees, potentially making it a more attractive option for traders seeking higher returns and cheaper on-chain activity. Its recent network upgrades have also increased confidence in its technical capabilities.
Spillover Effect and Community Propagation: The Bitcoin ETF approval has undoubtedly fueled a general sense of bullishness in the crypto landscape, which has influenced investor sentiment towards altcoins with perceived potential. Additionally, the strong community support and active development around Ethereum Classic contributes to its forward momentum.
The market capitalization of ETC is currently $4.248 billion. Chart: tradingview.com
ETC trading volume increased
The surge is not limited to price alone. Ethereum Classic’s trading volume has also increased by 276% in the last 24 hours, reaching $1.8 billion.
This increase in trading activity further validates the market’s interest in Ethereum Classic and potentially signals continued upward pressure on its price.
However, it is important to remember that the crypto market remains highly volatile. While Bitcoin spot ETF approval and Ethereum Classic’s recent performance are positive indicators, investors should do thorough research and consider both potential benefits and risks before making any investment decisions.
With its strong community, technological advancements, and now, the tailwind of Bitcoin ETF approval, Ethereum Classic has established itself as the leader in the current altcoin rally.
Whether it can maintain its momentum and break the $30 barrier remains to be seen, but its recent performance signals a new level of excitement for this flexible blockchain project.
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