The First Spot Bitcoin ETF Approval on the Horizon
The approval of the first spot Bitcoin ETF in the US seems to be almost imminent with the Bitcoin price rallying all the way to $47,000 on Monday, January 8. However, the Bitcoin rally cools down as the BTC price seems to be consolidating around the $46,500 level.
Bitcoin Options Market Give Mixed Signals
Recent developments are fueling expectations of an imminent ETF, leading to heightened FOMO sentiment, particularly during US trading hours, as Bitcoin surged to a new high of $47,000, according to insights from Greeks.Live.
However, the options market presents mixed signals. Short-term IVs (Implied Volatilities) witnessed a sharp decline, with the current ATM (At-The-Money) option IV for the 11th of June dropping below 90%, marking a 30% decrease within a few hours. Other terms also experienced significant declines.
Furthermore, despite the breakout to new highs, block trades have shown relative restraint, primarily dominated by selling calls and buying puts. This trend raises questions about the cautious stance of institutional investors, who initiated short positions in the ETF market when it was at its peak momentum.
BTC Whales Are Selling?
Many analysts anticipated that the Bitcoin ETF approval would be a sell-the-news event leading to the BTC price dropping under $40,000. Also, the whale action shows concerning signals as of now.
In a notable development, Lookonchain highlights a strategic move by a smart whale in the cryptocurrency market. Following Bitcoin’s surge above $45,000 today, the whale deposited a substantial 1,000 BTC, equivalent to $22.47 million, into Binance. This move aligns with a broader trend observed over the past two weeks, where the same whale deposited a total of 4,000 BTC, amounting to $178.7 million, to Binance.
Notably, the strategic deposits were made at an average price of $44,673 during the specified two-week period. What makes these transactions stand out is that the whale strategically sold at high prices on each occasion, indicating a calculated and opportunistic approach to capitalizing on favorable market conditions.
Hot Take: Bitcoin ETF Approval and Whale Activity
The approval of the first spot Bitcoin ETF in the US is eagerly anticipated, as reflected in the recent Bitcoin price rally. However, mixed signals from the options market and strategic moves by BTC whales add an element of uncertainty to the future trajectory of the ETF market. The decline in short-term IVs and dominance of selling calls and buying puts raise questions about institutional investors’ cautious stance. Meanwhile, the strategic deposits made by a smart whale indicate a calculated approach to capitalize on favorable market conditions. As we await further developments, it’s important to closely monitor these factors for potential shifts in sentiment and market dynamics.
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