The market research company CryptoQuant predicted last month that Bitcoin could drop to a minimum of $32,000 in the coming month after the ETF approval. This outcome is a result of the “buy the rumor, sell the news” market phase.
“Buy the rumor, sell the news” is an investor strategy where assets are bought when positive market rumors surface, holding them with the belief that prices will rise in the future, until the official information is released, at which point profits are taken. This is not the first time the cryptocurrency market has witnessed this trading trend.
Furthermore, the anticipation of a comparable ETF for Ether by investors is contributing to the downward trend in Bitcoin prices. In recent times, there has been a shift towards the use of Ether, with funds being withdrawn from Bitcoin as individuals believe that positive developments will also occur for this second-largest cryptocurrency. This past weekend, Ether achieved its highest market value since May 2022.
Following the recent price dip, many still anticipate ETF approval to be a catalyst for the market, but it may take additional time to see its full impact as newcomers to digital currency become more familiar with this asset and engage more actively.