jimonnemisz
@jimonnemisz
Rumors of Bitcoin ETF approval can boost market liquidity by attracting institutional and retail investors, increasing trading volume and narrowing bid-ask spreads. Enhanced liquidity may stabilize prices and reduce volatility. Investors often respond by increasing spot Bitcoin holdings, hedging with futures, or diversifying into ETF-related assets, anticipating capital inflows. Some adopt a "buy the rumor, sell the news" strategy, capitalizing on pre-approval hype. However, regulatory uncertainty may prompt cautious investors to wait for confirmation, balancing potential gains against risks of volatility and misinformation.
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