The crypto market has been experiencing a non-surprising bullish period, with Bitcoin breaking resistance levels unexpectedly, yet many were confident in the continued rise. The excitement among investors is palpable as they eagerly anticipate future developments.
Following BlackRock’s ETF application in June, there has been widespread belief in an imminent approval, signaling a turning point similar to the market’s response to the LUNA collapse. Despite skepticism from some, including the older generation who are often more insightful about crypto, the price moved contrary to their expectations, suggesting a reevaluation of the term ‘crypto boomer’.
Bitcoin’s impressive rally is ongoing, but investors should be wary of certain factors in the coming days. Misinformation, such as Cointelegraph’s erroneous ETF approval report, could mislead investors, and SEC’s website updates may be too swift for manual traders to compete with trading bots.
If approval is announced, expect rapid price movements followed by speculative trends, possibly orchestrated by market makers targeting high-leverage positions. The first hours after approval could show extreme volatility, with significant movements likely during the first Asian market opening, emphasizing the importance of well-set stop points.
Investors should anticipate potential stop hunts due to volatility, and a SEC rejection, though unlikely, could lead to substantial losses, particularly in altcoins. Post-ETF approval, the initial trading days’ volumes will be critical in assessing institutional demand and market reality.