Bitcoin spot ETF approval could be a 'sell the news' event
The approval of a spot bitcoin ETF could be a “sell the news” event, with the BTC price potentially reaching a low of $32,000, CryptoQuant analysts said.
To support this assertion, CryptoQuant analysts pointed to data that showed bitcoin market participants are currently sitting on high unrealized profits after the digital asset's rally above the $40,000 mark. "Short-term bitcoin holders are experiencing high unrealized profit margins of 30%, which historically has preceded price corrections," the report said.
CryptoQuant analysts added that bitcoin miners are also experiencing high unrealized profits, which could also contribute to BTC sell pressure. "We are seeing increasing miner selling in the last few weeks as prices remain above $40,000," the report added.
Bitcoin price correction is usually preceded by an increase in the BTC price and in miner transaction fees.
According to the analysts, during corrections in bull markets, the price of bitcoin tends to retrace to the short-term-holder realized price. Considering this, the report added that — in a "sell the news" scenario — the bitcoin price could decline, potentially reaching as low as $32,000.
Potential for a spot bitcoin ETF approval
Bloomberg Intelligence analysts are assigning 90% odds of a spot bitcoin ETF approval by the U.S. Securities Exchange Commission in the first quarter of 2024.
Year-to-date gains for bitcoin are currently above 155%, with the digital asset's rise being mostly fueled by optimism that the SEC is getting ready to approve one or more of the spot bitcoin ETF applications that have been filed with the regulatory body. More than a dozen firms — including BlackRock , WisdomTree, and Valkyrie — are waiting for the green light from the SEC.
The world's largest digital asset by market capitalization is now changing hands for $43,119 at 6:50 a.m. ET, according to The Block's Prices Page .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
New Meme Coin Captures Whale Attention With 9,200% Gains, Leaving BONK and PEPE Behind!
Ethereum’s Reign Could Be Over: These 4 Powerful Altcoins Are Ready to Dominate the Market
Trump and Wall Street: How long will the love affair last?
Share link:In this post: Wall Street loved Trump’s win at first—stocks jumped, Bitcoin soared, and borrowing costs hit rock bottom, but some sectors started cracking fast. Tax cuts and deregulation made financial and energy stocks shoot up, but tariffs and plans to deport workers freaked out economists and markets. Tariffs mean higher prices for Americans, and even Walmart’s warning it’ll have to raise prices if Trump pushes through with his trade war.
OpenAI could face a bigger problem than Elon Musk’s lawsuit against it
Share link:In this post: OpenAI’s much bigger threat comes from government regulation since it has more power than Elon Musk. If the government chooses to investigate the shift of OpenAI from a non-profit to a Public Benefit Corporation, there will be severe repercussions. The AI company’s dual model has sparked controversies
Trending news
MoreCrypto prices
More
