The decision on Bitcoin spot ETFs is now less likely to be a “sell the news” event, according to K33 Research. Following last week's leverage shock, K33 analysts believe the SEC's decision is now just hours away.
K33 Senior Analyst Vetle Lunde and Vice President Anders Helseth argued in their statement that the long liquidations had the effect of “pouring fuel on the fire” and that these effects were gradually added to each other.
In their analysis shared last week, K33 analysts claimed that the approval of the Bitcoin Spot ETF could bring a wave of decline in the BTC price.
Helseth and Lunde said the following on the subject:
“The liquidation wave on January 3 greatly improved the market situation.”
Nominal open interest on Bitcoin (BTC) perpetual contracts dropped 12% between January 2 and January 6, and funding rates reached a neutral state.
Since then, rates have maintained a stable neutral level, indicating much less froth in the market compared to the previous week, Lunde and Helseth said. “Following last week's deleveraging, the market is more robust to handle the profit taking on the ETF announcement,” they added.
*This is not investment advice.
