Bitcoin ETF

Bitcoin

Following the approval of Bitcoin exchange-traded funds, Bitcoin made headlines worldwide, but what was the immediate impact on the crypto market? 
The long-term effects of the Bitcoin (<a href="https://crypto.news/price/bitcoin/">BTC</a>) ETF approval remain to be seen and are expected to be positive by most market participants. Still, the immediate effects were not as clear-cut. After the United States <a href="https://www.sec.gov/news/statement/gensler-statement-spot-bitcoin-011023" target="_blank" rel="noopener">released</a> its statement on approving Bitcoin ETFs, Bitcoin trading volume skyrocketed from just under $40 billion to its current value of over 62%. 
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 <img loading="lazy" decoding="async" width="975" height="396" src="https://crypto.news/app/uploads/2024/01/BTC_7D_graph_coinmarketcap-1.png" alt="Bitcoin ETF approval: crypto volume spiked, market cap rose - 16" class="wp-image-14237275">
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 Bitcoin price and volume 7-day chart. | Source: CoinMarketCap
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 You might also like: <a href="https://crypto.news/jpmorgan-ceo-criticizes-btc-despite-backing-blackrock-bitcoin-etf/"> JPMorgan CEO criticizes BTC despite backing BlackRock Bitcoin ETF </a> 
Bitcoin’s market cap similarly rose from about $890 billion to its current $910 billion — an increase of $20 billion, or nearly 2.25% — while the market cap of crypto as a whole rose from $1.77 trillion to a spike of $1.84 trillion before falling back to $1.77 trillion as of press time. About $7 billion entered and then left the market in mere hours. 
<figure class="wp-block-image size-large">
 <img loading="lazy" decoding="async" width="1024" height="546" src="https://crypto.news/app/uploads/2024/01/chart-1-1024x546.png" alt="Bitcoin ETF approval: crypto volume spiked, market cap rose - 17" class="wp-image-14237274">
 <figcaption class="wp-element-caption">
 Cumulative crypto market cap 7-day chart. | Source: CoinMarketCap
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</figure> 
This spike was also mirrored in trading volume, rising from about $86 billion to nearly $140 billion. This translates to a trading volume increase in the crypto market of nearly 63%. 
According to CoinStats <a href="https://coinstats.app/btc-dominance/" target="_blank" rel="noopener">data</a>, Bitcoin dominance — the percentage of the crypto market cap in Bitcoin — rose from 50.4% to a spike of 50.8%. Then, it quickly fell to its current value of 49.4% as investors took to more volatile altcoins, looking to capitalize on the market enthusiasm. 
 Read more: <a href="https://crypto.news/fidelity-cuts-proposed-spot-bitcoin-etf-fee-to-0-25-amid-industry-fee-competition/"> Fidelity cuts proposed spot Bitcoin ETF fee to 0.25% amid industry fee competition </a>

Bitcoin ETF approval: crypto volume spiked, market cap rose

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