Bitcoin’s (BTC) attempt at a comeback has stirred the pot, causing altcoins to become volatile again. With the US Securities and Exchange Commission (SEC) set to make its decision on Ethereum ETFs this week, some sectors of altcoins might see higher liquidity and volatility than others. Read more: Bitcoin Weekly Forecast: Is BTC out of the woods? Currently, BTC trades at around $67,000 in the early Asian session and is poised to push into the daily imbalance, extending from $67,937 to $70,024. This zone also harbors the 2021 all-time high (ATH) at $69,138, coupled with the declining trend line connecting the swing highs formed since Mar 14. These two key levels will serve as resistance to the ongoing uptrend. The first scenario could see a major red streak across the markets, with altcoins posting double-digit losses. However, if the second outlook plays out, certain sectors of altcoins will witness a massive uptick in liquidity and volatility. BTC/USDT 1-day chart As seen above, the most important event this week is the SEC’s decision on the Ethereum ETF applications from VanEck and Ark 21Shares. Hence, ETH-based altcoins like Ethereum Classic (ETC), or Layer 2 scaling solutions like Polygon (MATIC), Mantle (MNT), and Decentralized Finance (DeFi) sector tokens like Lido DAO (LDO) Chainlink (LINK), and so on. Read more: Ethereum drops below $3,000 again, spot ETH ETF sparks debate in crypto community In addition to the ETH-based altcoins, AI coins could see a massive spike in investor interest due to the upcoming Nvidia earnings report on May 22. Furthermore, the ASI launch could see Fetch.AI (FET), Singularity.net (AGIX), and Ocean Protocol (OCEAN) shoot up.
Tags: Cryptocurrency, Bitcoin, Ethereum, Exchange-traded fund, Binance