Hidden Danger In Approval of Spot Bitcoin ETF

One of the hottest trends and narratives in crypto at the moment is the hype surrounding the expected approvals of several spot Bitcoin ETF applications in January.

This hype is causing lots of crypto and Bitcoin speculators to trade the news event by buying Bitcoin and holding until the news on the approvals are announced.

Whilst many crypto analysts and traders are excited about the prospect of a spot Bitcoin ETF approval, there are a few experienced crypto traders who have issued caution.

Get all of the latest crypto research and news delivered direct to your inbox by joining the FREE Crypto Insider Newsletter here.

Whilst many crypto analysts and traders are expecting price rises around and after an approval of spot Bitcoin ETF applications, a few people including Teeka Tiwari have said that there could be a sharp sell off after the approvals happen.

But why would this happen?

The pending approval of spot Bitcoin ETF applications has attracted a lot of crypto speculators who are trading the news event rather than holding onto Bitcoin for the medium term.

And should these Bitcoin ETF applications get approved, these Bitcoin and crypto speculators will sell to take profits which could mean there is a sharp price correction after approval of the Bitcoin ETF funds.

So this is something that Bitcoin Holders need to be wary off.

But should there be a sharp price correction doesn't mean that you should sell your Bitcoin.

If this happens, it would be a short sell off which will allow Bitcoin holders and traders to buy more Bitcoin at lower prices before Bitcoin's price should once again recover and rise again.

And another event crypto investors need to remember is that it is Bitcoin's halving next April where the amount of Bitcoin issued to miners is halved which reduces supply of Bitcoin in the market and hence, usually signifies the start of the crypto bull run where we see big money flood into Bitcoin and crypto.

So whilst there could be a price correction after the approval of spot Bitcoin ETF funds in January, this should only be a minor price correction before the investors return to Bitcoin and crypto.

Get all of the latest crypto research and news delivered direct to your inbox by joining the FREE Crypto Insider Newsletter here.