CryptoQuant Predicts Bitcoin Correction Following Potential ETF Approval
On-chain analytics platform CryptoQuant suggests that Bitcoin may experience a significant correction as the market awaits potential approval of spot-based BTC exchange-traded funds (ETFs). According to CryptoQuant, if Bitcoin ETFs are approved this month, it could trigger a “sell-the-news” event as investors look to secure their profits.
The on-chain data provider predicts that if a correction does occur following the approval of BTC ETFs by the US Securities and Exchange Commission (SEC), Bitcoin could drop by nearly 30% from its current price. This would bring the price down to around $32,000 based on one metric called the short-term holder (STH) realized price.
The STH realized price tracks the average acquisition price of all Bitcoin that have not been moved for less than 155 days. A pullback to this level would erase most of the gains made by investors who bought BTC in the past five months.
Bitcoin’s Current Price and Market Activity
As of now, Bitcoin is trading at $44,990, showing a growth of over 5% in the last 24 hours.
Hot Take: Potential Downside for Bitcoin After ETF Approval
If Bitcoin ETFs are approved this month, there is a possibility of a significant correction in the price of Bitcoin. On-chain analytics platform CryptoQuant believes that investors may take advantage of this event to lock in their profits, potentially leading to a sell-off. Based on one metric called the short-term holder realized price, if a correction does occur, Bitcoin could drop by almost 30% from its current price to around $32,000. This could wipe out most of the gains made by investors who bought BTC in the last five months or so.
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