While all eyes on the Bitcoin and cryptocurrency markets are focused on the 2023 year-end close and January 10, 2024, which is seen as the possible approval date for spot Bitcoin ETFs, a remarkable report came from CryptoQuant.
According to The Block, CryptoQuant analysts said the potential approval of the spot Bitcoin ETF could turn into a “news sell” scenario.
At this point, CryptoQuant analysts implied that the ETF approval would not be a big event as investors and most analysts expected, and claimed that the possible ETF approval may not have a positive impact on the BTC price.
Pointing out that Spot ETF approval could be a buy-the-rumor-sell-the-news event, analysts argued that the BTC price could potentially drop to $32,000 after approval.
Analysts stated that behind these thoughts was the fact that short-term investors made high unrealized profits as BTC rose above $ 40,000. “Short-term Bitcoin holders experience high unrealized profit margins of 30%, which have historically preceded price corrections,” he said.
At this point, analysts pointed out that there has been a historical correction after the profit rates of short-term BTC holders were high and warned investors.
“According to historical data, during corrections in bull markets, the Bitcoin price tends to return to the realized price of short-term investors. That is, there has always been a correction when the unrealized profit rates of short-term Bitcoin holders were high.
Considering this, potential ETF news If there is a 'buy the rumor, sell the news' event in Bitcoin, BTC could experience a correction and potentially drop to $32,000.
“We are also seeing increased miner sales over the last few weeks as the BTC price remains above $40,000.”
*This is not investment advice.