The anticipation of Bitcoin exchange-traded funds (ETFs) potentially receiving approval has generated widespread excitement. However, recent data suggests that an approval announcement could trigger a “sell the news” event, overshadowing the initial enthusiasm. K33 Research indicates that a decision on Bitcoin spot ETFs is expected between January 8 and 10, with the possibility of market-moving news emerging earlier. Traders have been heavily exposed to derivative products, which have shown significant gains following Bitcoin’s recent upward momentum.
This scenario is becoming a primary target for profit-taking, potentially leading to a self-fulfilling prophecy of sales. Despite meetings and updated S-1 filings suggesting imminent approval, data points to a 5% chance of ETF rejection. A potential post-approval sell-off could affect Bitcoin’s price dynamics. Short-term investors chasing profits may contribute to a temporary dip, but the long-term outcomes remain uncertain and hinge on the balance between profit-taking and sustainable institutional interest.
In the midst of this uncertainty, optimism surrounds Bitcoin mining. Notably, Canadian miner Bitfarms (BITF) saw its stock price double last month without any change in revenue, highlighting a positive market sentiment towards Bitcoin-related stocks. Another positive indicator for Bitcoin is the increase in fees collected by miners. The leading cryptocurrency has ranked top in fees between block rewards over the past 30 days.
The rising trend in annual fees, exceeding $4 billion, signals strong network activity and enhances Bitcoin’s attractiveness to miners. Despite these positive aspects, the immediate market sentiment reflected a downturn in Bitcoin’s price. At the time of reporting, Bitcoin had experienced a 1.13% decrease over the past 24 hours, pricing at $42,544.09.