A lot of this bull run seems to be hype and anticipation for the Spot bitcoin ETF and a Ethereum spot ETF. This speculation rally has pretty much come to a stop at the $44,000 mark and has been hovering between the $41,000 and $43,000 for a while now. Normally not a great thing as investors will either cash out or start moving to alt coins to get new gains which we have seen with the likes of SOL and a few others. It really feels like the hype gas is out at the moment.
If a delay comes in again for the early Jan spot $BTC ETF we most likely could face a sell off. But we could also face a sell off even if it is approved as I'm going to bet ya most of those people that would have invested via the ETF are most likely already in some alternative measure by now.
Exchanges are now starting to play a rather large impact on things. With constant attacks and shut downs on exchanges we are seeing liquidity dry up and selling pressure mount up. A lot of Bitcoin is move off exchanges as they are considered high risk now with governments stepping in to shut them down or freeze their assets or just down right scams. I'm not sure why anyone would park their crypto on an exchange in the first place.
There's also been major outflows on platforms like Coinbase in the amount of 18,000 $BTC this is causing massive speculation about the ETF launches and how they very well could have the opposite impact and cause a selling frenzy "sell the news" type of scenario. And well this actully makes sense with the stagnating price and liquidity we are seeing there's not much room for gains again right now. We are seeing funds removed from gains of massive alt coins as well funnel back into BTC and then sell off. Plus being end of year people do like to off load and take gains or losses in order to save on end of year taxes.
What we are seeing is mounting sell pressure moving into the new year which could make for a very stagnate and slow sell of of crypto. Now up to a 1.7 trillion dollar market cap in total crypto has come a long way in just 2023. However unless something else starts to take foot.
We have also seen some big crypto players that are normally very bullish on crypto start selling out for their profits. Normally these big time players have a good idea of what's going on in the background but for the rest of us it's a big speculation guessing game.
How do you think $BTC is going to react in the first month of the new year?
