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⚡Bitcoin Faces Potential $32,000 Drop on ETF Approval💧

Croxroad

29 Dec 2023 — 3 min read

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🤔 Investor Caution Advised

In simple terms, the article suggests that if a Bitcoin spot ETF is approved, there's a likelihood of a price correction, with Bitcoin possibly dropping to $32,000. The term "sell the news" is used to describe a common market behaviour where prices surge before a positive event, only to fall afterward as traders take profits. This is because some traders use the opportunity to close positions, particularly those using leverage.

The approval of a Bitcoin ETF is generally seen as positive, bringing in institutional investors, but the article points out that short-term Bitcoin holders currently have high unrealized profits, a situation that historically precedes corrections. Capriole Investments advises cautious portfolio management due to the anticipation of increased volatility around the potential ETF approval on January 10.

The history of Bitcoin shows similar "sell the news" patterns, such as in 2017 after the CME listed BTC futures and in 2021 after Coinbase's IPO. Currently, Bitcoin is trading at $42,450, starting the year at $16,000, and daily trading volume is stable at $80 billion.

⚖️ Legal Victory for Celsius Network

In simple terms, a U.S. bankruptcy judge has given the green light to Celsius Network's shift from its initial business plan to Bitcoin mining. This decision came after the company faced challenges with the U.S. Securities and Exchange Commission (SEC). The judge ruled that the new direction wouldn't harm creditors or customers compared to the original bankruptcy plan.

Celsius, a cryptocurrency lender, had to revise its strategy after the SEC rejected its initial plan to earn fees from validating crypto transactions. The change also led to the exclusion of some external bidders, leaving US Bitcoin Corp to manage the new mining venture.

Though some creditors and the U.S. Department of Justice raised concerns about the significant shift, the judge ultimately approved the move without requiring a new vote. The interim CEO of Celsius, Chris Ferraro, sees this as a positive step for creditors, emphasising a focus on promptly distributing cryptocurrency.

The revised bankruptcy plan not only facilitates Celsius' emergence from bankruptcy in early 2024 but also releases $225 million in cryptocurrency assets. This will be returned to customers, along with equity shares in the newly established Bitcoin mining business.

🪴 Who Accepts Bitcoin? What Can I Buy With Bitcoin?

Currently, an increasing number of industries are embracing Bitcoin as a legitimate payment option. While Bitcoin's everyday use as currency isn't as widespread as traditional fiat, it's noteworthy that your Bitcoin account can be directly linked to VISA debit cards (Note: be sure to check relevant taxation regulations regarding this).