Spot Bitcoin ETF Approval Expected on Wednesday
Despite expectations of the U.S. SEC approving multiple spot Bitcoin ETFs this week, the weekend saw a bearish mood in the altcoin market, with many coins suffering double-digit losses over the past few days. Important crypto analysts McKenna and Lex have shared their insights on X, providing explanations for the recent price movements.
McKenna on Market Selloff
McKenna attributes the current selloff to a deleveraging process in long-tail assets, anticipated due to elevated funding rates and a sentiment shift towards euphoria. The CME Futures open interest has remained stable, indicating that institutional investors maintain their long Bitcoin positions. This contrasts with the volatility seen in altcoins.
— McKenna (@Crypto_McKenna) January 8, 2024
Lex on Weekend Selling
Another analyst, Lex, comments on the timing of selling cryptocurrencies, particularly just before the weekend and ahead of the anticipated ETF decision. He suggests that investors might be acting prematurely or without considering the potential positive impact of the ETF approval on the market.
Selling your coins on a weekend, 48h or so ahead of ETF, what can go wrong 👍
— lex (@mskvsk) January 8, 2024
Current State of the Crypto Market
At the time of writing, major cryptocurrencies have seen a decline. Bitcoin is trading at around $44,017, down 0.19% in the past 24 hours. Ethereum, BNB, Solana, and Cardano have also experienced drops, with Cardano seeing the most significant decrease of 7.26%. These figures reflect the broader market trend and the heightened volatility in the altcoin sector.
Hot Take
The crypto community expects the U.S. SEC to approve spot Bitcoin ETFs later this week. Crypto analysts provide some reasons for the weekend’s bearish mood, with major cryptocurrencies experiencing drops and the heightened volatility in the altcoin sector.
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