Bitcoin, Dogecoin Trade Flat, Ethereum Drops As Spot ETFs Get Approved: The Altcoin King Might Retrace But Analyst Thinks Dip Buying Is The 'Best' Position

Leading cryptocurrencies traded broadly flat Monday as the SEC gave a final nod to spot ETFs tracking the price movement of Ethereum.

What Happened: Bitcoin meandered in the $67,000 – $68,000 region, while Ethereum started to witness selling as the news of spot ETF approvals started rolling in.

A whale transferred more than $30 million in Ether to Binance after the news, raising suspicions of a dump.

The market witnessed more than $105 million in liquidations in the last 24 hours, with nearly $75 million in upside bets getting wiped out. 

Ethereum's Open Interest rose marginally by 0.25%. An increase in OI, coinciding with a drop in price, is construed as the opening of new short positions, in turn signaling a continuation of the downtrend.

Bitcoin's OI fell 1.11% in the last 24 hours, indicating the liquidation of long-position traders.

The Cryptocurrency Fear & Greed Index showed a reading of 71, increasing from 70 the previous day. The values implied the prevalence of "Greed" sentiment in the market.

Top Gainers (24-Hours)

The global cryptocurrency market stands at $2.44 trillion, down 1.44% in the last 24 hours.

Get Started

Start Your Crypto Journey Today and Get $500 in Rewards

Exclusively for new Crypto.com App users, unlock up to $500 worth of rewards in the most popular tokens when you start trading.

Get Started

Stocks started the week with a bang. The S&P 500 rose 59.41 points, or 1.08%, to end at 5,564.41, marking its best performance since early June. The Nasdaq Composite surged 1.58% to finish at 18,007.57, while the blue-chip index, Dow Jones Industrial Average, added 0.32% to hit 40,415.44 at the closing bell.

The rally was spurred by AI chip giant NVIDIA Corp. NVDA which bounced 4.76% during the day, wiping out some losses from the previous week.

Last week, major indices like the S&P 500 and the Nasdaq Composite registered their biggest weekly losses since April.

According to the CME FedWatch tool, traders are anticipating a 91% chance of the Fed lowering interest rates during September's FOMC meeting.

See More: Best Cryptocurrency Scanners

Analyst Notes: Widely-followed cryptocurrency trader KALEO anticipates a higher probability of pullback after the spot Ether ETFs are approved.

That said, they believed buying the dip was the "best" position to enter as Ether looked bullish on a higher time frame.

"We’re still early enough into this bull market that shorting is a greedy play if you’re giga-bullish on a higher time frame (ETH hasn’t even touched a new ATH yet)," the trader emphasized.

Another well-known trader, going by the pseudonym Moustache noted that the apex cryptocurrency has retested its previous all-time high of $69,000 for five months, something which they interpreted as bullish.

"The longer the better, because the stronger the support. Much higher in 2024. Be ready fam," the trader enthusiastically remarked.