Specialists from the analytical platform CryptoQuant warned of a possible correction in the market after the approval of spot Bitcoin ETFs in the United States. This is reported by The Block with reference to report data.
Analysts have suggested that the approval of spot Bitcoin ETFs could trigger a series of sales of the first cryptocurrency. They pointed to a possible scenario known as “buy the rumor, sell the news.”
According to the report, most market participants made high unrealized profits after Bitcoin crossed the $40,000 mark.
In early December, Tether received $1.1 billion in unrealized profits from its Bitcoin investment. MicroStrategy also gained profit amid the growth of the first cryptocurrency with almost $2 billion in unrealized profits.
Experts added that mining companies also made high unrealized profits. They note growing sales volumes and high transaction fees on the Bitcoin network, which may also indicate the beginning of a correction.
The head of the derivatives division of the Bitfinex exchange, Jag Kuner, warned about the risks of a decline in the rate of the first cryptocurrency. In his opinion, in the short term there will be a pullback in the market as investors begin to take profits.
Trezor analyst Josef Tetek completely criticized spot Bitcoin ETFs. According to him, this class of products contradicts Satoshi Nakamoto's vision for the asset.
The US Securities and Exchange Commission (SEC) has set a deadline for filing updated applications for a spot Bitcoin ETF. It expires on December 29th. Matrixport platform analysts predicted the likely launch of the product in January 2024.
Source: Cryptocurrency
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