News

Latest News

Stocks in Play

Dividend Stocks

Breakout Stocks

Tech Insider

Forex Daily Briefing

US Markets

Stocks To Watch

The Week Ahead

SECTOR NEWS

Commodites

Commodity News

Metals & Mining News

Crude Oil News

Crypto News

M & A News

Newswires

OTC Company News

TSX Company News

Earnings Announcements

Dividend Announcements

Why Bitcoin is not a “Sell the Hype“

Hours after the SEC approved a spot Bitcoin (BTC-USD) ETF, BTC prices fell by nearly $10,000. It bounced from a monthly sub-$42,000 low to $42,720. This is below the brief $48,922.38 peak on Jan. 11, 2024.

Contrary to the bearish chart pattern, this is not a “sell the hype” moment. The ETF will bring mass adoption of BTC buying to retail investors. It increases demand and raises awareness for the largest cryptocurrency. Conversely, risks are higher than normal for crypto platforms and miners. Bears have a 10% short interest against Coinbase (COIN). They are betting that new Bitcoin buyers do not need Coinbase’s popular platform.

Instead, holding a BTC ETF would suffice.

Microstrategy (MSTR), Marathon (MARA), Robinhood Markets (HOOD), Hive Digital (HIVE), and Bit Digital (BTBT) are in similar bearish patterns. Bitcoin’s price is likely to rise steadily as markets re-adjust for the ETF. It would pressure the aforementioned stocks. Read more on that here: https://www.baystreet.ca/cryptonews/713/Stocks-Tied-To-Crypto-Fall-After-Bitcoin-ETFs-Are-Approved

Ethereum (ETH-USD), the second biggest crypto, is a winning holding. It gained by 16% in the last week.

Read more about it here.

Large ETF firms are seeking approval for the launch of Ethereum ETFs in the U.S.

In the near term, both Bitcoin and Ethereum may pull back slightly. The markets are perfectly pricing in the BTC ETF approval. Now it needs to adjust participants taking profit in a “sell the news” event.

Neither Ethereum nor Bitcoin is not a hyped crypto. Demand for both will increase steadily as investors buy the ETF as an alternative to holding fiat currency.