Blockchain data analysis company CryptoQuant warned in a recent research report that once Bitcoin spot ETF is approved, it is highly likely to trigger selling pressure and cause a significant pullback in BTC price to $32,000.
The U.S. Securities and Exchange Commission (SEC) is currently reviewing Bitcoin spot ETF applications submitted by 13 issuers, including BlackRock and Grayscale. The market is optimistic that the first Bitcoin spot ETF will be launched in January 2024, bringing in new capital for Bitcoin.
However, CryptoQuant, a blockchain data analysis company, issued a warning in a recent research report that once Bitcoin spot ETF is approved, it is highly likely to trigger selling pressure and cause a significant pullback in BTC price. CryptoQuant analysts explained that after Bitcoin broke through the $40,000 mark, Bitcoin investors already had a significant amount of unrealized profits in their accounts. At the same time, Bitcoin miners also faced significant unrealized profits and needed to sell their Bitcoin holdings at high prices, which would further intensify the selling pressure on Bitcoin.
In conclusion, analysts predict that with the approval of the ETF, Bitcoin’s price may drop to $32,000. However, CryptoQuant’s downward prediction is short-term. In a report released on the 20th of this month, the company also pointed out that Bitcoin is already in a bull market cycle and, considering the expectation of ETF approval, the Bitcoin halving event, and the macroeconomic outlook, Bitcoin may even surge to $160,000 at the peak of the bull market.