Retail crypto traders are trying to capitalize on the potential spot Bitcoin ETF approval, but pro traders have been more cautious.
The cryptocurrency market's capitalization metric has been trading within a relatively narrow upward channel for the past 10 weeks. This indicates bullish momentum remains intact, despite recently failing to break above the $1.7 trillion market cap resistance.
In December, Bitcoin (BTC) price made 20-month highs above $44,000, and Ether's (ETH) upswing was stropped at $2,400. Some analysts argue that the excessive demand for leverage longs (buying) will trigger a correction, but is that really the case?
Regardless of whether the ongoing bullishness has been driven by the expectation of a spot Bitcoin exchange-traded fund (ETF) approval by March, the odds of cascading liquidations exist when traders heavily rely on futures markets.
