Bitcoin's Momentum and the Anticipation of Spot Bitcoin ETF Approvals
The price of Bitcoin (BTC) has been on a steady rise for the past 11 months, experiencing significant jumps in March, June, and October. These increases were largely fueled by banking uncertainty, the filing of a spot Bitcoin ETF by BlackRock, and optimism surrounding the approval of spot Bitcoin ETFs. On December 3, Bitcoin surpassed the $40,000 mark, reaching its highest level in 19 months.
Potential Sell-Off Event with Spot Bitcoin ETF Approval
Cryptocurrency experts predict that the approval of spot Bitcoin ETFs could trigger a sell-off event. James Edwards, a cryptocurrency analyst at Finder, explains that the phrase "buy the rumor, sell the news" may apply in this case. While the anticipation of ETF approval has caused Bitcoin's price to climb, the actual approval may lead to a correction in the market. However, Edwards also acknowledges that cryptocurrency is a "wild card" and that a material correction is not guaranteed.
Uncertainty Surrounding Fund Managers' Response
Edwards further speculates that fund managers may not immediately invest in Bitcoin once the ETFs go live. He believes that it could take months or even years before significant inflows occur. This cautious approach by institutional investors may prevent a major correction from happening.
Bitcoin's Strong Fundamentals and Potential Price Pullback
Crypto experts argue that Bitcoin's strong fundamentals, such as the upcoming BTC halving, global central bank money printing, and geopolitical uncertainty, may limit any potential market pullback. CK Zheng, co-founder of cryptocurrency investment firm ZX Squared Capital, expects any pullback to be "shallow." He emphasizes that BTC's fundamentals are stronger than ever.
December Outlook and Institutional Investor Speculation
Analysts do not anticipate Bitcoin losing momentum in December. Edwards points to early signs of institutional investors speculating on ETF approval, with increased inflows to existing Bitcoin futures ETFs. He predicts that prices will likely remain flat until there is confirmation from either charts or an ETF approval. Crypto lawyer Joe Carlasare also sees "little chance" of a significant Bitcoin correction before ETF approval.
Mass Spot Bitcoin ETF Approval Could Bring Mainstream Focus
The cryptocurrency industry is eagerly awaiting a potential approval window for spot Bitcoin ETFs between January 5 and 10, 2024. Henrik Anderrson, Chief Investment Officer at Apollo Capital, believes that a mass approval of these ETFs could redirect mainstream attention to the cryptocurrency market.
Overall, while a correction in Bitcoin prices may be expected with the approval of spot Bitcoin ETFs, the unpredictable nature of cryptocurrency makes it difficult to determine the exact outcome. Analysts remain optimistic about Bitcoin's prospects and do not foresee a significant correction in the near future.
Did you miss our previous article...
https://trendinginthenews.com/crypto-currency/safe-wallet-scammer-steals-2m-through-address-poisoning-in-one-week
