![Why Are Bitcoin ETF Approvals 'Much Better' For Altcoins Than BTC](https://captainaltcoin.com/wp-content/uploads/2023/08/P2P-Review-38.png)
Crypto expert Crypto Rover (@rovercrc on Twitter )in a tweet to his over 600k followers weighs in on whether the potential approval of a spot Bitcoin exchange-traded fund (ETF) could lead to a “sell-the-news” event.
Immediate Price Impact
According to Crypto Rover, in the short-term period immediately following the announcement of a spot Bitcoin ETF approval, we can expect to see Bitcoin’s value surge, likely between 5-10%. This would be an initial positive price reaction to the news.
However, in the days after that, there may be some selling pressure and a price drop. Crypto Rover explains that several key factors will influence whether a sell-off occurs:
“The actual demand for the ETF, the speed at which it becomes operational, and whether GBTC holders decide to sell their Bitcoins. Currently, these questions remain unanswered.”
Essentially, the level of ongoing demand for investing in the new ETF, how quickly the ETF issuer is actually able to launch trading, and decisions by current Bitcoin holders will all impact price action after the initial announcement spike.
Doge2014 raises 300K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +Speculative Capital Inflows
An important consideration is the huge influx of speculative money that has entered Bitcoin recently, with prices rising from $25,000 to around $44,000:
“This increase is largely attributed to expectations surrounding the Spot ETF. A significant portion of this capital is likely looking for a chance to sell.”
A lot of investors piled into Bitcoin specifically betting on approval of a spot ETF product. Some of these speculative dollars could rush back out shortly after the news drops.
However, Crypto Rover notes this may not happen immediately, as many are still anticipating a strong price pump directly resulting from the approval announcement. The real test could come in the subsequent days and weeks.
Long-Term Outlook
Zooming out to the bigger picture, particularly looking ahead to the next Bitcoin bull cycle, Crypto Rover believes the introduction of a spot Bitcoin ETF should ultimately prove very bullish:
“In the long term, this development is expected to be highly bullish, introducing substantial market inflows.”
By providing an easier mainstream investment vehicle linked directly to Bitcoin prices, the ETF could draw tremendous institutional money and broader capital flows into the crypto space over time.
So in summary, Crypto Rover sees a spot Bitcoin ETF approval leading to initial excitement and price gains, potential near-term selling, but ultimately long-lasting positive impacts for Bitcoin adoption and valuations. The exact outcome remains uncertain and depends on various unfolding news and events in the days surrounding SEC approval.
You may also be interested in:
- LINK Comes Back Fighting: Chainlink Technical Analysis Post Market Crisis
- Stratis’ Strax Surges Over 60% in Two Days Following This Key Announcement: Why The Move May Not Last
- Bitcoin Might Be Down, But $BTCMTX Continues Rising After Crossing $7.4 Million In Funding – Here’s Why
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.