Currently, the market is waiting for a decision from the SEC regarding the approval of the BTC Spot ETF. Bloomberg also thinks we have a 90% chance the BTC Spot ETF will be approved (
Grayscale Trust Becomes ‘Betting Line’ for Spot Bitcoin ETF).
Many market experts are commenting very positively on the impact of the BTC Spot ETF on the crypto market (
Gauging Spot Bitcoin ETF's Impact on Price Volatility). I agree that BTC Spot ETF will be a channel for large amounts of money from institutional investors to flow into Bitcoin and the entire crypto market, similar to what Gold Spot ETF has done in the past. However, from a price perspective, I think all the optimism about the possibility of the BTC Spot ETF being approved has seeped into the price.
We know the behavior of “buying the rumors, selling the news” in financial markets, plus as soon as the BTC Spot ETF is approved, new money cannot immediately flow into the crypto market. Instead, the market will lack positive news to maintain investor FOMO, meaning we could see a 20%-30% correction in BTC price and of course overall. market department.
I am following the price action around $49K area, if BTC reverses, I think I will also exit my current position with BTC and ALTS to protect my existing profits, then maybe I will return to market after BTC Halving (expected to arrive in Q2 2024).
What is your opinion on the short-term impact of the BTC Spot ETF on the market immediately after its approval? A positive push to push the price up or a big selling force to push the price down? How do you plan to handle your portfolio around the launch of the BTC Spot ETF?