A recent report by blockchain data analytics firm CryptoQuant suggests that the potential approval of spot <a href="https://en.bitcoinhaber.net/bitcoins-steady-stance-amidst-altcoin-gains-a-glimpse-into-the-future-of-cryptocurrency-prices”>Bitcoin ETFs in the United States could become a “sell the news” event. CryptoQuant analysts have made notable statements regarding the process, raising questions about what investors should be aware of during this period.
Supporting their claims about possible ETF approvals, CryptoQuant analysts point to data showing that Bitcoin market participants are currently realizing significant profits, especially after the cryptocurrency’s price rose above $40,000. The report highlights that historically, short-term Bitcoin holders have achieved high unrealized profit margins of 30% before price corrections.
The analysts also note that Bitcoin miners have been realizing high profits, which could contribute to selling pressure in the Bitcoin market. Observations indicate an increase in sales by mining companies in recent weeks as Bitcoin trades above $40,000.
According to the analysts, during bull markets, Bitcoin prices tend to revert to the mean after corrections. The report suggests that in a “sell the news” scenario, the price of Bitcoin could potentially drop, possibly retreating to the $32,000 level.
Bloomberg Intelligence analysts give a 90% probability that the U.S. Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF in the first quarter of 2024. The expectation is that the first spot Bitcoin ETF application could be approved by January 10th.
Since the beginning of the year, Bitcoin has seen gains exceeding 155%, largely driven by optimism that the SEC is preparing to approve one or more spot Bitcoin ETF applications. Investment firms, including BlackRock, WisdomTree, and Valkyrie, are among those awaiting the green light from the SEC.