Today, I would like to congratulate those who took profit from shorting BTC yesterday. They just reached 29,500 and gained 600 points. With a rapid decline in the early morning, the lowest point of BTC also came to around 29,500, and then began to rebound slowly. The current market is around 30,100. From the perspective of trading volume, it fell to around 29,500 last night and then rebounded quickly. It seems that the trading volume is not low, but it does not mean that the market will get better.
The Bitcoin spot ETF began review today (Wednesday, US time). Most investors may bet that the preliminary review results will be good for Bitcoin, which is the main reason for the strong price (market traders expect preliminary review results this week). Therefore, the price has not fluctuated for a long time, and it is also waiting for the review results.
We have mentioned before that the current situation needs a piece of news to break this situation. Undoubtedly, the US SEC started the review process of this round of ETFs in the early morning. This emotion brought FOMO emotions to the market, but here I want to say that the SEC’s preliminary review is a necessary process, but whether to raise questions and reject the application is possible. Although rejection does not mean rejection, it only increases the difficulty of ETF application rules.
Regarding the SEC's review of ETFs, I personally think that they may raise questions and increase the difficulty of application. The recent victory of the Ripple case has brought relative heat to the market, and of course it will make many traders think that the SEC is "underestimating the enemy". If the SEC starts to review at this time, it will inevitably use various means to obstruct and thus demonstrate its majesty. So everyone needs to be cautious at present.
Regarding spot, I still suggest you wait and see. It is not the time to make a move yet. The contract is still mainly shorted at high levels today. Although the early morning brought a FOMO mood, I personally feel that it will not last long. It is most appropriate to be conservative and go short above 30300!