A Potential Market Event with Bitcoin ETF Approval
A recent report from CryptoQuant suggests that the approval of a Bitcoin spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) could have a significant impact on the market. This comes as the price of Bitcoin stabilizes above $40,000, leading to unrealized profits for many investors.
Possible Drop in Bitcoin Price
CryptoQuant’s analysis indicates that the approval of a spot Bitcoin ETF could lead to a drop in BTC price. Short-term holders are currently experiencing around 30% unrealized profit margins, which has historically preceded price drops. Additionally, increased selling activity from Bitcoin miners adds to the potential sell pressure on BTC. The anticipation of a spot Bitcoin ETF approval creates a volatile environment.
Varied Predictions for BTC Bottom
While CryptoQuant predicts a possible drop to $32,000, other analysts have different predictions. Analyst Ali highlights a strong support zone between $37,150 and $38,360, backed by 1.52 million addresses holding 534,000 BTC. This support zone may mitigate the risks of a drastic price fall following the spot ETF approval.
Hot Take: Impact of Spot ETF Approval on BTC Price
The potential approval of a Bitcoin spot ETF by the SEC has sparked discussions in the crypto market. If approved, this could trigger a “sell the news” event and lead to a drop in BTC price. However, there are differing opinions on how low the price might go. While some predict a drop to $32,000, others highlight strong support levels around $37,150-$38,360. The activities of 1.52 million addresses holding 534,000 BTC provide a solid foundation of support. Ultimately, the impact of the spot ETF approval on BTC price remains uncertain, but it is expected to create volatility in the market.
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