According to a recent report from CryptoQuant, Spot’s potential approval is bitcoin BTC
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ETFs can be a “news selling” event.
To support this claim, CryptoQuant analysts pointed to data showing that Bitcoin market participants are now enjoying high unrealized profits after the digital asset rose above $40,000. “Short-term Bitcoin holders have historically experienced unrealized profits as high as 30% prior to price corrections,” the report said.
CryptoQuant analysts added that Bitcoin miners are also experiencing high unrealized profits, which may also be contributing to BTC selling pressure. “Miner sales have been increasing over the past few weeks as prices remain above $40,000,” the report added.
Bitcoin price adjustments are usually preceded by increases in the BTC price and miner transaction fees.
According to analysts, during bull market corrections, Bitcoin price tends to revert back to short-term holder realized prices. Taking this into account, the report added that in a “sell the news” scenario, the price of Bitcoin could fall, potentially as low as $32,000.
Spot Bitcoin ETF Approval Likely
Bloomberg Intelligence analysts predict a 90% chance that the U.S. Securities and Exchange Commission will approve a spot Bitcoin ETF in the first quarter of 2024.
Bitcoin’s year-to-date gain is currently exceeding 155%, and the digital asset’s rise has been fueled in large part by optimism that the SEC may be prepared to approve one or more of the spot Bitcoin ETF applications submitted to the regulator. More than a dozen companies, including BlackRock, WisdomTree and Valkyrie, are awaiting SEC approval.
The world’s largest digital asset by market capitalization is currently trading at $43,119 as of 6:50 a.m. ET, according to The Block’s pricing page.
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