Bitcoin And cryptocurrency While all eyes are on the 2023 year-end closing date in the market and January 10, 2024, which is seen as the possible approval date for spot Bitcoin ETFs, a remarkable report came from CryptoQuant.
According to the news of The Block CryptoQuant Analysts said the potential approval of a spot Bitcoin ETF could turn into a “news sell” scenario.
At this point, CryptoQuant analysts imply that the ETF approval will not be a big event as investors and most analysts expect. BTC He claimed that it may not have a positive impact on the price.
Analysts point out that spot ETF approval could be a buy-the-rumor-sell-the-news event. He argued that the BTC price could potentially drop to $32,000.
Analysts stated that behind these thoughts was the fact that short-term investors made high unrealized profits as BTC rose above $ 40,000.Short-term Bitcoin holders experience high unrealized profit margins of 30%, which have historically preceded price corrections.” said.
At this point, analysts pointed out that there has been a historical correction after the profit rates of short-term BTC holders were high and warned investors.
“According to historical data, during corrections in bull markets, the Bitcoin price tends to return to the realized price of short-term investors. So, when the unrealized profit rates of short-term Bitcoin holders were high, there was always a correction.
Considering this, potential ETF news If there is a ‘buy the rumor, sell the news’ event in Bitcoin, BTC could experience a correction and potentially drop to $32,000.
“We are also seeing increased miner sales over the last few weeks as the BTC price remains above $40,000.”
*This is not investment advice.
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