Analysts claim that the lackluster response to the false approval was underwhelming.
QCP Capital, a Singapore-based firm, suggests that the lackluster response to the false spot Bitcoin ETF approval may indicate that the event was already factored into the market. In a recent Telegram post, QCP Capital analysts noted that the resistance area remained intact after the news broke, hinting that the potential ETF approval had been “mostly priced in.”
Amidst this uncertainty, QCP Capital analysts believe that Ethereum (ETH) could be a viable investment option. They point to the performance of the ETH/BTC cross, which briefly dropped below the Jun. 22 low but quickly recovered above the 0.051 support level. This supports the idea that Ethereum may be a “laggard play” worth considering.
To capitalize on the current market conditions, QCP Capital suggests selling the spot-futures basis spread, which could yield a risk-free annual return of 12-17% if held until maturity. The analysts also expect options volatility to normalize once the uncertainty surrounding the ETF approval is resolved.
Furthermore, QCP Capital does not rule out the possibility of Bitcoin (BTC) dropping below the $38,000 mark. They believe this level could present a good opportunity for long positions, especially in anticipation of the Bitcoin halving event in April.
In light of the false ETF approval, legal representatives from the SEC are calling for an investigation into potential market manipulation. American lawyers and senators are also demanding transparency from the SEC regarding the false data. Senator Cynthia Lummis specifically urged the SEC to provide clarity on the events leading up to the now-deleted post on X.
According to an official statement from the social network, the SEC’s X account was compromised due to an individual gaining control over a phone number associated with the regulator through a third party. As of now, Bitcoin is trading at $45,668, according to CoinGecko data.
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