Will the Approval of the Spot Bitcoin (BTC) ETF Be a ‘Sell-the-News’ Event? – Expert

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.

Transform Hundreds Into Millions With the Magic of Memecoins – think $BONK, but bigger!🤫

The key? Getting in early, especially during the IDO phase. Get in on NuggetRush now! This innovative memecoin blends play-to-earn gaming with real-world gold mining. Join soon to take advantage of the current ICO prices!

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:

Check NuggetRush ($NUGX)

Sponsored: Invest Responsibly, Do Your Own Research.
Being in its ICO stage, NuggetRush offers a prime opportunity for early investors to get in at potentially lower prices
A unique play-to-earn gaming platform in the memecoin market
The platform combines artisanal and gold mining with cryptocurrencies in an unusual gaming context, offering a distinctive and immersive experience
Fosters a strong community by encouraging physical meetups among members
NFT Integration with Prominent Characters
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

CaptainAltcoin
Logo