Despite the most recent changes regarding the Bitcoin ETF, the landscape of virtual currencies is once more in the midst of a profound shift. The most valuable cryptocurrency in the world of digital assets, Bitcoin, has recently declined, losing more than 2.4% of its value.

This year has witnessed a stunning 156% acquisition in the value of the most popular digital currency, Bitcoin. The primary cause for these changes is the conjecture that the launch of ETFs could generate a new wave of demand. Undoubtedly, not all of this can be considered entirely beneficial because there is a lot of speculation in the market on whether or not the approval of these ETFs would lead to profit-taking strategies. Such speculation can potentially negatively impact the shifts in the value of bitcoin.

CryptoQuant described what happened as a possible “sell the news” incident, referring to the wave that formed upon the news.

The term used above refers to a well-known phenomenon in the capital markets: the rising sentiment, leverage, and asset prices before a positive event, followed by a sharp decline in prices.

This is because smart traders take advantage of overloaded long deals, ensnaring leveraged traders and pressuring them to sell out or liquidate during drops.

The announcement that an ETF for Bitcoin is being approved can be seen as beneficial since it allows institutions to start investing in the cryptocurrency, increasing buying pressure.

The memo stated that “Bitcoin short holders are experiencing an unrealistic 30% profit margin, which has historically been before price corrections (areas marked with red circles).” Furthermore, short-term holders keep spending Bitcoin profitably, and returns typically materialize once short-term losses are realized.

Conclusion

ETF Approval: What to Expect from Bitcoin?

• Bitcoin has recently declined, losing 2.4% of its value, and is currently trading at $42,400
• 2023 has witnessed a stunning 156% acquisition in Bitcoin’s value
• The main cause of this decline can be the conjecture of the launch of ETFs and the newly generated wave of demand.
• Bitcoin short holders are experiencing an unrealistic 30% profit margin.
• CryptoQuant described what happened as a possible “sell the news” incident, referring to the wave that formed upon the news.
• Lots of speculation in the market on whether or not the approval of these ETFs would lead to profit-taking strategies that can potentially negatively impact the shifts in the value of bitcoin.