Wall Street jinx? After the launch of Bitcoin ETF, traders weigh the potential to’sell news’

Wall Street’s previous big launches of Bitcoin-related products were followed by price slumps that lasted for multiple months.
Wall Street welcomed the first Bitcoin (BTC), exchange-traded fund. (ETF) was listed on the New York Stock Exchange on Oct. 19. The fund attracted more trading volume than $1 billion on its first day. Meanwhile, BTC price rose to a new record high $67,000 on Saturday. Notable Wall Street listings coincided closely with spot Bitcoin price highs. Source: TradingView. Bitcoin’s record-breaking December 18, 2017 rally saw CME launch its Bitcoin Futures product. Source: TradingView. Bitcoin rallied to an all-time high of $65,000 on December 18, 2017, the same day that CME launched its Bitcoin Futures product. However, the upside move was met with strong selloffs that caused BTC to fall to as low $28,800. Please, God! No! No! No! pic.twitter.com/ITKFBJqK6h– Nunya Bizniz (@Pladizow) October 22, 2021

Bizniz and other analysts were concerned about the “buy the rumor sell the news” correction. Analyst Lark Davis, for instance, said that he wouldn’t be surprised if Bitcoin prices crashed following the ProShares Bitcoin ETF launch. This was the same as what happened after the CME Bitcoin Futures launch. Launched on October 31st 2017.- Bitcoin rallied 224%. The launch date was December 18th 2017, the day BTC hit its 2017 high. We wouldn’t be surprised to see the ETF launch unfold exactly like this. Epic buy the rumor, sell the news event pic.twitter.com/sKrmhdLxQv– Lark Davis (@TheCryptoLark) October 8, 2021

Related: Bitcoin decides fate of $60K as weekly close keeps BTC traders on their toes. Related: Bitcoin decides fate for $60K as weekly close keeps BTC trader on their toes. This indicated a significant interest among institutions in Bitcoin ETFs, with cash-marginated Bitcoin Futures open interests rising by up to 79% month to-date and CME basis increasing from negative in July to over 16% earlier this week. Source: ByBt.comNoelle. Acheson, head market insights at Genesis, said that Bitcoin’s perpetual forwards rolling basis, which is used to gauge demand for leverage, has ticked up, but was still only 13.08% compared with mid-April’s 34.6%. Spot BTC market corrections have seen high leverage remain a common factor. The neutral funding rates at the moment indicate that there is a low chance of a major pullback. You should do your own research before making any investment or trading decision.

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