According to Cointelegraph: Though logically Bitcoin (BTC) is headed for a correction once the long-awaited spot Bitcoin exchange-traded funds (ETFs) are approved, experts know better than to write crypto’s script in stone. Bitcoin’s price has been surging over the past 11 months due to a combination of banking uncertainty, BlackRock's filing for a spot Bitcoin ETF, and optimism over anticipated spot Bitcoin ETF approvals.
Crypto analyst James Edwards sees the approval of a spot Bitcoin ETF as a potential catalyst for a 'sell-the-news' event. When the market reacts to a rumor and drives up the price of an asset, only for it to fall once the news has been confirmed, this is known as 'buy the rumor, sell the news.' Edwards reckons it could be months or even years before the ETF approval substantially impacts the market.
However, the general consensus among experts is that a significant correction in Bitcoin prices is not a foregone conclusion. Chief Investment Officer Ryan McMillin at Merkle Tree Capital sees the spot Bitcoin ETFs as a significant event and feels any sell-off would be counterbalanced quickly.
Similarly, CK Zheng, co-founder of crypto investment firm ZX Squared Capital, anticipates any market pullback to be limited due to lasting positive fundamentals for BTC, such as the upcoming BTC halving, excessive money printing by global central banks, and geopolitical uncertainty.
While Bitcoin is logically poised for a correction, Edwards also echoes the sentiment that on the unpredictable stage of crypto, logical scenarios often get upstaged by unscripted events.
As for the outlook for December, investors have been speculating on the ETFs' approval, with inflows to existing Bitcoin futures ETFs increasing recently. Experts like Edwards, Joe Carlasare, and Henrik Anderrson envisage Bitcoin prices remaining robust, and anticipate any negative impact to be fleeting, given the likely approval window for the ETFs in the first half of January 2024.
