Blockchain data analytics company CryptoQuant warned in a recent research report that once the Bitcoin spot ETF is approved, it is highly likely to trigger selling pressure, causing the BTC price to significantly fall back to $32,000.
The U.S. Securities and Exchange Commission (SEC) is currently reviewing Bitcoin spot ETF applications submitted by 13 issuers, including BlackRock and Grayscale. The market is optimistic that the first Bitcoin spot ETF will be launched in January 2024, bringing in new capital for Bitcoin.
However, CryptoQuant, in its recent research report, warned that once the Bitcoin spot ETF is approved, it is highly likely to trigger selling pressure, leading to a significant price pullback for BTC. CryptoQuant analysts explained that Bitcoin investors already hold a substantial amount of unrealized profits after BTC broke through the $40,000 mark. At the same time, Bitcoin miners also face significant unrealized profits and need to sell their Bitcoin holdings at high prices, which will further intensify the selling pressure on Bitcoin.
The analysts predict that the news of the ETF approval could stimulate a price pullback for Bitcoin, with the price potentially falling to $32,000. However, CryptoQuant’s downward prediction is a short-term performance. In a report released on the 20th of this month, the company also pointed out that Bitcoin is already in a bull market cycle. Considering the expectations of the ETF approval, Bitcoin halving events, and macroeconomic prospects, Bitcoin could even surge to $160,000 at the peak of the bull market.
Related Reports:
BitMEX Warning: Bitcoin Spot ETF with Cash Redemption Will “Lose Most of Its Advantages”
Investigation: Global ETF issuers hold 793,000 Bitcoins, with Grayscale’s GBTC accounting for nearly 80%, hiding “enormous selling pressure”?
Bitcoin Spot ETF Approval Speculation: BTC’s minor surge followed by a sharp drop, unlikely to trigger a bull market without meeting three conditions
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