CryptoQuant Predicts a Bitcoin ETF Approval May Trigger a “Sell The News” Response.

(CTN News) – Based on a recent report from CryptoQuant, the approval of a spot Bitcoin ETF has the potential to trigger a “sell the news” event.

The report highlights that bitcoin market participants currently hold significant unrealized profits following the digital asset’s surge above $40,000. These high profit margins for short-term bitcoin holders have historically preceded price corrections.

Additionally, bitcoin miners are also experiencing substantial unrealized profits, which could contribute to selling pressure on BTC. The report suggests that during corrections in bull markets, the bitcoin price tends to retrace to the realized price of short-term holders.

In a “sell the news” scenario, the report speculates that the bitcoin price could decline, potentially reaching as low as $32,000.

Bitcoin ETF approval is being considered.

According to Bloomberg Intelligence analysts, there is a high probability of the U.S. Securities Exchange Commission (SEC) approving a spot bitcoin exchange-traded fund (ETF) in the first quarter of 2024.

This projection has fueled the recent surge in bitcoin’s value, which has seen year-to-date gains of over 155%. The anticipation of the SEC granting approval to one or more of the spot bitcoin ETF applications has been a major driving force behind this increase.

Several prominent firms, including BlackRock, WisdomTree, and Valkyrie, have submitted applications for spot bitcoin ETFs and are eagerly awaiting the SEC’s decision.

These firms recognize the potential of a bitcoin ETF to attract institutional investors and provide a regulated and accessible way for investors to gain exposure to the digital asset.

As of 6:50 a.m. ET, bitcoin, with a market capitalization of $43,119, is being actively traded on The Block’s Prices Page.

The market is closely monitoring any updates or announcements from the SEC regarding the approval of a spot bitcoin ETF, as it could have a significant impact on the future of bitcoin and the broader cryptocurrency market.

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