Bitcoin prices should ‘logically’ correct in Jan, but crypto’s a ‘wild card’
Bitcoin should “logically” be headed for a “sell-the-news” correction in January, according to analysts, but that doesn’t mean that’s how it’s going to shake out.
The price of Bitcoin (BTC) should “logically” undergo a correction once spot Bitcoin exchange-traded funds (ETFs) are approved, though commentators also concede that crypto is also a “wild card.”
Bitcoin has been gaining momentum over the last 11 months, with a jump in March amid banking uncertainty, another spike in June when BlackRock filed for a spot Bitcoin ETF, and again in October, similarly due to optimism over spot Bitcoin ETF approvals.
On Dec. 3, Bitcoin cleared the $40,000 mark, its highest level in 19 months.
Sell the news event
James Edwards, a cryptocurrency analyst at Finder, said that “logically,” the approval of a spot Bitcoin ETF should trigger a sell-off event.
“I’d like to say that logically this makes it a sell-the-news type event.”
“Buy the rumor, sell the news” is a phrase that describes a situation where a stock or asset rises ahead of anticipated positive news or events but falls once the news is confirmed or the event occurs.
The longer #Bitcoin continues to climb towards 50k without an ETF approval the more I think this could be a sell the news event.
Not trolling.
— Crypto Caesar™️ (@crypto_caesar1) December 2, 2023
“The idea that this is going to lead to widespread institutional buying on day 1 is a bit too optimistic,” explained Edwards, adding it is unlikely fund managers will “ape in the moment it goes live.”
