A recent report from CryptoQuant has sparked discussions, suggesting that a Bitcoin spot exchange-traded fund (ETF) approval by the US Securities and Exchange Commission (SEC) could lead to a significant market event. This possibility arises amid the Bitcoin (BTC) price stabilizing above $40,000, leaving many market participants sitting on substantial unrealized profits. The report by CryptoQuant particularly posits that this scenario could trigger a “sell the news” event, historically linked to market corrections. Related Reading: Eyes On $50,000: Bitcoin Poised For Major Rally Amid Spot ETF Optimism – Analyst Bitcoin Possible Drop To $32,000 CryptoQuant’s analysis points to the current state of Bitcoin holders as a reason for the possible drop in BTC price when the approval of spot Bitcoin ETF happens. Particularly the short-term ones, experiencing unrealized profit margins of around 30%. According to CryptoQuant, such high-profit levels have often preceded price drops. Additionally, the report notes an uptick in selling activity from Bitcoin miners, adding to the potential sell pressure on BTC. This, combined with the market’s anticipation of a spot Bitcoin ETF approval, could create a volatile ..
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