According to a recent report from CryptoQuant, the potential spot approval of a Bitcoin (BTC) ETF could be a “selling news” event.
According to a report from CryptoQuant, the immediate approval of the Bitcoin ETF could be a “sell” event. To support this claim, CryptoQuant analysts pointed to data showing Bitcoin market participants currently seeing unrealized gains after the digital asset surged above $40,000.
“Short-term Bitcoin (BTC) holders are experiencing high unrealized profit margins of 30% that have historically preceded price corrections.”
Analysts at CryptoQuant pointed out that Bitcoin miners are also making significant unrealized gains. They added that this could also contribute to selling pressure on BTC. In the report, analysts drew attention to the following points:
“We have been seeing increased miner sales over the last few weeks as prices remain above $40,000.”
Bitcoin price corrections usually begin with an increase in the BTC price and miner transaction fees. With this in mind, this report highlights that the Bitcoin price could fall in a “selling news” scenario. Therefore, analysts predict that BTC price may drop to $32,000. According to Bloomberg analysts, there is a 90% chance that the SEC will approve the spot Bitcoin ETF in the first quarter of 2024.
Bitcoin’s annual gain is currently over 155%. The increase in assets is mainly driven by optimism that the SEC is preparing to approve one or more Bitcoin ETF spot applications with the regulator. More than a dozen companies, including BlackRock, WisdomTree and Valkyrie, are awaiting the green light from the SEC.
