Despite the Bitcoin spot ETF approval, things are not looking so good for the crypto markets since BTC crashed 12% between January 11 and 12. This move has caused many altcoins to take a beating.
Was Bitcoin ETF a “sell the news” event? Is this the cycle top? Will crypto markets rally again? Let’s try to answer these questions.
More ETF Reads:
- Dissecting the $4.6 billion Bitcoin ETF debut: New capital or clever shuffle?
- Bitcoin price dips, $130 million in total liquidations with economist anticipating long weekend for BTC bulls
- Grayscale outflows near $600 million on trading day 3 as GBTC holders leverage spot BTC ETF approvals
Bitcoin ETF approval aftermath
It is highly unlikely that Bitcoin price forms a cycle top here. However, there might be a short-term pullback, which could knock BTC down to $35,000. A local bottom formation here should kickstart the 2023 bull run and propel it to new highs.
To answer if ETF approval news was a “sell the news” event, let’s take a look at other key events and how Bitcoin price reacted to them.
- December 18, 2017 - CME launches its first Bitcoin futures contract, marking the cycle top for BTC at $19,785 or roughly $20,000.
- September 23, 2019 - Bakkt goes live, crashing Bitcoin price by 20% in under two days.
- April 14, 2021 - Coinbase direct listing on the Nasdaq Global Select Market, dubbed Coinbase IPO also marked the bull market rally top at $64,898.
- January 11, 2024 - Bitcoin spot ETF starts trading.
In addition to the above, there are other factors that need to be considered before concluding if the Bitcoin ETF launch is a sell-the-news event or catalyst that extends the 2023 Bitcoin bull rally, propelling it to new all-time highs.
Important Events (January 15 - 30)
- January 15 - Fetch.AI (FET) - Mainnet upgrade
- January 22 - Mina Protocol (MINA) - Testnet extension to prepare for mainnet Berkley upgrade
- January 22 - Axie Infinity (AXS) Migration Snapshot
- January 23 - Avalanche (AVAX) Avscan Transition
- January 24 - Flow (FLOW) townhall
- January 30 - Stellar (XLM) voting for mainnet upgrade Protocol 20
- January 31 - Ethereum Classic (ETC) Spiral Network upgrade at block height 19,250,000
These above-listed altcoins are likely to experience heightened volatility in the upcoming days due to the aforementioned events.
More Altcoin Reads:
Chainlink price teases with a 20% upside potential as LINK coils up for its next move
Celestia price tops out with a possible 10% correction for TIA before another buying opportunity
MATIC price risks a 7% fall even as the network empowers the next wave of DeFi on Polygon zkEVM
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