Crypto Expert Warns of Bitcoin “Washouts” Ahead of ETF Approval – Coinpedia Fintech News
Cryptocurrency guru ‘The Flow Horse’ is waving a caution flag, hinting that some big shake-ups might be headed our way in the crypto sphere.
The hype is real around the upcoming approval of a spot Bitcoin ETF, expected to send BTC prices soaring. But The Flow Horse is throwing shade on the parade, pointing out that most of this buzz is from folks playing with borrowed money. That means potential trouble in paradise with looming corrections.
The pseudonymous analyst emphasizes the risk associated with significant price changes in Bitcoin following major announcements, particularly warning traders about short positions.
The Flow Horse suggests that it might be safer to remain flat than express a short position, considering the uncertainty associated with the potential surprise announcement of the ETF before the end of the year.
The analyst underscores the unique nature of the ETF announcement, highlighting the possibility of a sudden and extreme market reaction. The warning extends to potential liquidations, especially for those holding short positions with perceived comfortable margin buffers.
Read More: How High Will Bitcoin Really Soar? ETF Hype Debunked by Wall Street
Navigating the Fallout
The recent correction resulted in substantial losses, with over $475 million in long positions and $73 million in shorts. High funding rates contributed to an uncertain market environment, leading to the widespread unwinding of leveraged bets. Major liquidations occurred on platforms like OKX ($190 million), Binance ($148 million), and Huobi (nearly $60 million).
Despite the recent rocky ride, some crypto enthusiasts argue that Bitcoin’s recent climb is rooted in solid foundations. They point to a steady rise in Bitcoin activities, suggesting that enthusiasm is alive and well in the market, adding a dash of optimism to the mix.
Also Read: Top 3 Altcoins Poised for Significant Growth Following ETF Approval
As we navigate this crypto rollercoaster, The Flow Horse’s wise words are a reminder to tread carefully. With potential surprises and extra bumps in the road surrounding the ETF decision, keeping your wits about you is key in a world where the only constant is change, one digital coin at a time.
Does The Flow Horse have a point? Will the ETF be a boom or bust for Bitcoin?
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