Listen to these facts and decide for yourselfđ€đ
In 2017, Chicago Mercantile Exchange (CME), the world's largest futures exchange, launched bitcoin futures in December. Bitcoin reached its peak at $19.6k, marking a substantial increase from the cycle-low of $172 (114x). đđ°
Fast forward to 2021, the optimal day to sell was when Coinbase went public. On that day, Bitcoin nearly touched $69k, surging from the cycle-low of $3.8k (18x). đđŒ
Despite both events receiving extensive media coverage and being perceived as significant 'green flags' for institutional acceptance, the market experienced a downturn. This mirrors the classic 'buy the rumor, sell the news' phenomenon. đ°đ
As we approach the potential approval of Bitcoin ETFs, expected around January 10th, 2024, some investors may wonder if this is the opportune moment to sell. At present, Bitcoin hovers just below $47k, showcasing an increase from the cycle low of $15.5k (â3x). Even with a surge to $69k by the launch day, the increase would only be around 4.5x from the cycle-low, suggesting that it may not necessarily be the market's ending destination. đïžđ
A crucial distinction is that in 2017 and 2021, the Bitcoin Halving had already occurred, whereas today it lies ahead, with the supply shock anticipated in the next 3.5 months. âïžâł
There is a likelihood of a minor sell-off upon the approval of Bitcoin ETFs, as some market participants are solely traders. Over the past three months, Bitcoin has surged over 75%, with no substantial pullbacks exceeding 10%. Consequently, some institutions may opt to secure profits, adhering to a cautious approach. đŒđž
However, any potential dips could be swiftly absorbed, reminiscent of the inaugural Gold ETF in 2004. While it experienced a brief 'sell the news' event lasting only a few weeks, gold subsequently exhibited a consistent upward trajectory for the following five years. đ°
What are your thoughts on this? Feel free to share your opinions. Don't forget to follow me for more insights. đŁïžđïžâđšïž
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