On September 12, the price of Bitcoin (BTC) experienced a sudden surge to $26,500 from its previous level of $25,100. This spike was believed to be caused by the filing for permission to launch a Bitcoin spot ETF by Franklin Templeton, a digital assets management company holding $1.5 trillion.
This news created a significant amount of FOMO (fear of missing out), resulting in a 4.58% increase in Bitcoin’s value and an approximate $1,000 gain within a few hours. There are currently around 20 other filings for a Bitcoin spot ETF being considered by the Securities and Exchange Commission.
However, the momentum gained from this news quickly faded. Santiment, an on-chain data vendor, referred to the subsequent drop in Bitcoin’s price as an “overreaction” from the crypto community after the ETF news spread.
As a result, traders are now taking profits, causing the price to slightly decline. Despite this temporary setback, Bitcoin’s price remains volatile, and the market continues to closely watch the developments surrounding the potential approval of a Bitcoin spot ETF.
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