/ Get ready for a crypto rollercoaster! As Bitcoin ETF approval looms, K33 Research warns of potential sell-off risks. Will it boost or burden Bitcoin?
Author: Nilesh Hembade.
Date: 03 Jan 2024, 11:36 AM IST
Hold onto your mining rigs, as the highly anticipated first Bitcoin spot ETF is on the verge of becoming a reality. With industry giants like BlackRock entering the scene, the crypto community is abuzz with excitement and a hint of caution. Bitcoin prices soared almost near to $46,000 this week, but a looming question remains: could the approval trigger a “sell-the-news” crash?
Will Bitcoin ETF Approval Trigger a “Sell-The-News” Crash?
K33 Research, a prominent market analysis firm, forecasts the SEC’s decision to be unveiled between January 8th and 10th, possibly even sooner. Senior Analyst Vetle Lunde issues a stark warning about a potential significant sell-off post-approval, despite the positive nature of the news itself.
Why the Caution?
Lunde paints a vivid picture of a market filled with exposed traders. Derivatives indicate substantial premiums accumulated during Bitcoin’s three-month rally, indicating that many investors are poised to cash in. According to Lunde, the approval might act as a catalyst, sparking a chain reaction of profit-taking that could turn the anticipated “sell-the-news” scenario into a self-fulfilling prophecy.
While recent discussions and updated SEC filings suggest positive developments, Lunde assigns a chilling 75% probability to a sell-off, giving only a 20% chance to approval and a mere 5% likelihood of rejection.
So, buckle up, crypto cowboys! The next week promises a rollercoaster ride, and only time will reveal whether the ETF will be a rocket propelling Bitcoin to new heights or a potential party pooper. One thing is certain: it’s going to be a wild and unpredictable journey.
Checkout : K33 Research Report Here.