Crypto markets have fallen over the past 24 hours following the SEC’s X account hack and the fake news announcement about spot Bitcoin ETF approvals. However, there is one crypto asset that is bucking the trend and has benefited from the fiasco — Ethereum.
Ethereum prices closed in on yearly highs just as Bitcoin and the wider crypto market retreated in the wake of the SEC social media account hack.
Ethereum Price Shows Resilience Amid Market Volatility
On January 10, crypto derivatives provider Greeks Live reported that the SEC’s fake news farce caused significant volatility in Bitcoin markets. “The drama was even more bizarre than expected,” it added.
Volatility spiked, but implied volatility fell, it observed. Implied volatility is a measure of future expected volatility derived from expiring crypto derivatives contracts.
The majority of investors found that the impact of ETF news (fake or real) on Bitcoin was limited, it noted.
Additionally, a lot of investors have “carried out the operation of reducing leverage and positions,” it said before stating that it was an “early sell the news” event.
Moreover, the Bitcoin price move after the announcement was just 2.3%, which is pretty normal for a regular day. The asset is currently trading down 1.6% on the day at below $46,000.
Read more: How to Buy Ethereum (ETH) and Everything You Need to Know
The Ethereum price, on the other hand, has gained more than 5% since the fake news incident. As a result, ETH prices have closed in on their 21-month high of $2,400.
“Ethereum over here just doing whatever it wants through all this,” observed crypto trader ‘Nebraskangooner.’
Furthermore, Ethereum has been underperforming recently, but the narratives may soon favor it, according to industry experts.
On January 9, Valkyrie chief investment officer Steven McClurg said that it wouldn’t surprise him if he saw Ethereum spot ETFs coming to market soon.
The sentiment has been echoed by crypto analysts, some of whom have labeled Ethereum as “insanely undervalued at the moment.”
Ethereum Fundamentals Strengthen
On January 10, Gnosis co-founder Martin Köppelmann said a chain’s value should come from the utility it provides. “Ethereum is fundamentally offering block space,” and users are paying around $2.5 billion per year for it, he added.
Moreover, the total value locked across the Ethereum layer-2 ecosystem recently hit an all-time high of $21 billion.
Ethereum staking is still a strong narrative, with 24% of the supply valued at around $68 billion currently staked and securing the network.
Finally, Ethereum remains a deflationary asset, with 339,000 ETH burnt since ‘The Merge’ in September 2022.
Therefore, it could be time for Ethereum prices to start moving upward, especially if Bitcoin derivatives gamblers are selling the news.
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