The price of Bitcoin (BTC) “logically” should undergo a correction once a spot Bitcoin exchange-traded fund (ETF) is approved, but commentators acknowledge that the cryptocurrency is also a “wild card.”
Bitcoin surged in March amid banking uncertainty, surged again in June when BlackRock applied for a spot Bitcoin ETF, and surged again in October due to optimism about the approval of a spot Bitcoin ETF. etc. has been gaining momentum over the past 11 months.
On December 3, Bitcoin surpassed $40,000, its highest level in 19 months.
News Event Sales
James Edwards, a cryptocurrency analyst at Finder, said that “logically” the approval of a spot Bitcoin ETF should trigger a selling event.
“Logically, I would say this is a news-selling type of event.”
“Buy on the rumor, sell on the news” is a phrase that describes a situation where a stock or asset rises before positive news or events are expected and then falls after the news is confirmed or the event occurs.
the longer it gets #Bitcoin As we continue to rise towards 50,000 without ETF approval, I think this could be a news event sell.
This isn’t trolling.
— Crypto Caesar™️ (@crypto_caesar1) December 2, 2023
“The idea that this is going to lead to widespread institutional buying on day one is a bit too optimistic,” Edwards said, adding that fund managers “are unlikely to be attracted the moment this starts.”
“It may take months, even years, before we see a truly dramatic influx,” he added.
Cryptocurrency is a “wild card”
But many, including Edwards, say this doesn’t mean a significant fix is definitely possible.
Ryan McMillin, Merkle Tree’s Chief Investment Officer, said that although Bitcoin has not seen a correction in over 100 days now (meaning the risk of a correction is increasing), the Spot Bitcoin ETF is also “the most anticipated ETF launch of all time.” admitted. The sale will be raised quickly.
Meanwhile, CK Zheng, co-founder of cryptocurrency investment firm ZX Squared Capital, believes the price decline will be “shallow.”
“We expect the market downturn to be shallow as BTC’s fundamentals are greater than ever, including the BTC halving scheduled for next year, massive money printing by global central banks, and ongoing geopolitical uncertainty around the world,” he said.
Even Edwards admitted that cryptocurrencies are just a “wild card.” For cryptocurrencies, this does not necessarily mean that a correction will occur, even if logic dictates that a correction will occur.
December outlook
Analysts do not expect Bitcoin to lose steam in December.
Edwards said there are already early signs that institutional investors are speculating about ETF approval, with inflows into existing Bitcoin futures ETFs increasing in recent days.
“In the worst case, prices are expected to remain unchanged while investors wait for chart or ETF approval.”
Cryptocurrency lawyer Joe Carlasare also saw in an X Post on December 4 that there was little chance that Bitcoin would undergo a serious correction before ETF approval.
“Why would a large seller show up when approval is weeks away?” Kalasare said.
It is unlikely that the Bitcoin price will undergo a major correction. #Bitcoin ETF approval is just around the corner. So that’s where I come from. Get up and get away! pic.twitter.com/yCCFQ3rSBS
— Jason A. Williams (@GoingParabolic) December 4, 2023
Related: Bitcoin’s top of the funnel is becoming less noisy, Bitcoin CEO Swan suggests.
Meanwhile, the approval of a large spot Bitcoin ETF could be enough to bring mainstream attention back to the cryptocurrency market, says Henrik Anderrson, chief investment officer at Apollo Capital.
The industry awaits the highly anticipated potential approval window between January 5 and 10, 2024.
magazine: Helsinki Crypto City Guide: 5,050 Bitcoins for $5 in 2009 Helsinki has gained a reputation for cryptocurrency.