The potential approval of a Bitcoin spot #ETF is causing concerns about a market correction, with some analysts warning that the approval could lead to a "sell the news" event.
According to CryptoQuant, short-term #Bitcoin holders are currently sitting on high unrealized profit margins, which historically has preceded price corrections. The firm has warned that the approval of a spot Bitcoin ETF could lead to downside pressure on #BTC prices, with the potential for a retracement to as low as $32,000. This is because the approval is perceived as a bullish event, leading to over-crowded long trades and the potential for traders to capitalize on the situation by forcing closures or liquidations.
As a result, some #crypto market participants may seek to realize their profits by selling Bitcoin once the news of the ETF approval is confirmed. The approval of a spot Bitcoin ETF has been a highly anticipated event, and while it is expected to open up inflows to Bitcoin and create consistent buy pressure, there are concerns about the short-term impact on the #Cryptocurrencies market. As a result, some investors are considering conservative portfolio management strategies in the lead up to the potential approval.
