Traders Stock Up on Stablecoins Ahead SEC's ETF Ruling

Traders Stock Up on Stablecoins Ahead SEC’s ETF Ruling

Last updated: February 12, 2024 5:03 AM

Published 2024-01-09

Investors are targeting stablecoins, as they expect mass Bitcoin activity which will be initiated due to the SEC’s upcoming verdict concerning spot Bitcoin ETF.

10th January of this year is set to approve the first-ever ETF that will be directly following a hike by Bitcoin’s price, creating waves in the cryptocurrency market.

Inflows of Stablecoin to exchanges normally indicate increased buying power, and the recent upswing marks that traders are anticipating market fluctuations.

This corresponds to the “extreme greed” measure in Crypto Fear and Greed Index, which suggests increased investor demand.

Crypto Fear & Greed Index | Source: Alternative

Thus, a growing stablecoin market cap ratio is also mentioned by independent analyst Cole Garner in favour of the anticipation for “a bullish Bitcoin ETF outcome.”

People asking me if we changed odds. No, we still holding line at 90% odds of approval by Jan 10 (aka this cycle), the same odds we've had for months (before it was cool/safe). What we watching for now: more amended/final filings to roll in and clarity on in-kind vs cash creates https://t.co/uiWgfxOfzz
— Eric Balchunas (@EricBalchunas) November 29, 2023

Bitcoin’s price has already reacted climbing during the past 24 hours. With the SEC’s ruling approaching, traders prepare for an unstable week.

Also Read: Christy Goldsmith Romero Spearheads Monumental CFTC DeFi Study

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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