A Top Trader’s Outlook for Bitcoin After Potential ETF Approval
A well-known trader in the crypto space has shared his perspective on the future of Bitcoin following the potential approval of spot market BTC exchange-traded funds (ETFs). According to the analyst, the introduction of a spot-based BTC ETF could lead to increased volatility in Bitcoin.
The trader suggests that once the announcement is made, there could be a brief rally in BTC, followed by a significant correction in the days that follow. Even if positive news such as an ETF approval leads to a bullish sentiment, the trader believes it will likely be a “sell-the-news” event.
While expecting a deep correction after the approval of spot BTC ETF applications, the trader believes that the companies behind these investment vehicles will play a crucial role in driving Bitcoin’s price higher. These companies, such as BlackRock, are unlikely to announce an ETF if they think Bitcoin will disappear soon.
Bitcoin is currently trading at $43,844.
Hot Take: Will Bitcoin Experience a Deep Correction After Potential ETF Approval?
A top trader in the crypto market has shared their thoughts on what may happen to Bitcoin following the potential approval of spot market BTC exchange-traded funds (ETFs). The trader believes that although there may be initial excitement and a price rally upon approval, there could also be a significant correction shortly after. This is known as a “sell-the-news” event, where traders sell their positions after positive news is announced. However, the trader also highlights that companies like BlackRock would not want Bitcoin to fail after announcing an ETF, suggesting that they may support Bitcoin’s price. Overall, it remains to be seen how Bitcoin will react to potential ETF approvals.
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