Bitcoin Correction On Cards? Crypto Expert Warns Potential ETF Approval Could Lead To 'Sell The News' Event
Portfolio Pulse from Rounak Jain
Cryptocurrency expert DonAlt warns that the potential approval of a spot-based Bitcoin ETF could lead to a 'sell-the-news' event, causing a significant drop in Bitcoin's value. Despite a 164% surge in market capitalization in 2023, DonAlt predicts a temporary rally followed by a correction of up to 30%. However, he suggests that firms like BlackRock Inc. might support Bitcoin's price post-ETF approval. The ETF decision is expected by Jan. 10 and could cause a 'demand shock' in the market.
December 24, 2023 | 4:55 pm
News sentiment analysis
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NEGATIVE IMPACT
Bitcoin is expected to experience a 'sell-the-news' event with a potential sharp correction following the approval of a Bitcoin ETF, as predicted by cryptocurrency expert DonAlt.
The article directly discusses the potential short-term price movement of Bitcoin based on the anticipated approval of a Bitcoin ETF. DonAlt's prediction of a significant correction is a clear indicator of a negative short-term impact on Bitcoin's price.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
BlackRock Inc. is mentioned as a firm that could acquire Bitcoin in bulk to support its price post-ETF approval, potentially influencing the company's investment strategy and market perception.
While the article suggests BlackRock might support Bitcoin's price, it does not provide concrete plans or actions taken by the company. The impact on BlackRock's stock is speculative and based on the potential actions it might take in response to the ETF approval.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50