Market analysts anticipate a decision on Bitcoin spot ETFs between Jan. 8 and Jan. 10, with a likelihood of a sell-the-news event, according to K33 Research.
Analyst Vetle Lunde suggests a 75% chance of profit-taking after approvals, citing traders’ exposure and high derivatives premiums. Despite signs of market froth and a 20% approval chance, recent SEC filings hint at imminent approval.
The analyst notes futures premiums at 50% on the Chicago Mercantile Exchange (CME) and growing open interest, suggesting anticipation.
Retail funding rates are at an annualized high of 72%, leading to cautious short positions. Bitcoin, currently at $45,269, rose over 5% in 24 hours on ETF approval anticipation.Â
Lunde anticipates a peak in the current rally on the verdict date but envisions long-term positive effects, expecting favorable flows through potential spot ETFs and the Bitcoin halving event in April.
The looming Bitcoin spot ETF decision triggers anticipation of a sell-the-news event, reflecting market caution despite positive indicators, and the potential for a short-term peak in the current rally.
Also Read: Spot Bitcoin ETF Hopes Surge as Grayscale Files S-3 Update
