Benzinga - On Monday, Bitcoin (CRYPTO: BTC) prices blazed through the $41,000 mark, its highest price in more than 1.5 years. But, some analysts are forecasting a Bitcoin correction after the Spot Bitcoin ETFs are approved, terming the current scenario to be a “Buy the rumor, sell the news”.
What Happened: So far, 2023 has seen Bitcoin reach multiple annual highs. In March 2023, it surged to $29,000, and then in June 2023 when BlackRock filed for a spot Bitcoin ETF, prices hit the $30,000 mark. Since then, the optimism has persisted, and BTC's growth has remained steady, albeit with occasional slowdowns that have moderated its pace of increase.
Also Read: Bitcoin's Rise To $41K Spurs Analysts To Tout 10% Returns Through Market-Neutral Bets
Finder cryptocurrency analyst James Edwards says Bitcoin prices should logically see a correction as the spot Bitcoin ETF is a sell-off event. Cointelegraph quoted him saying, “I'd like to say that logically this makes it a sell-the-news type event.”
The common stock market phrase, “Buy the rumor, sell the news” is where a stock/asset price sees an uptick before an expected positive news or event, but after the news is confirmed or the event occurs, the price drops.
Edwards adds “The idea that this is going to lead to widespread institutional buying on day 1 is a bit too optimistic. It could be months – if not years – before we see truly groundbreaking inflows.”
He told Cointelegraph that it is unlikely fund managers will “ape in the moment it goes live.”
Analyst, Position Trader, and Founder of Crypto Caesar Capital, Crypto Caesar took to X and stated, “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 Caeser goes on to add that,$30,000 would be a normal and healthy correction.
Read Next: Crypto Analyst Predicts Bitcoin To Surge To $200,000 By 2025
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.