A decision is expected on bitcoin spot ETFs between Jan. 8 and Jan. 10, though market-moving news may break earlier, according to K33 Research. Regardless, Senior Analyst Vetle Lunde expects approvals to become a sell-the-news event — or, at least, that's the most likely scenario.

“Everything points towards traders being considerably exposed ahead of the verdict, with derivatives pushing massive premiums following BTC’s last three months of continuous upside momentum,” Lunde wrote in a report. “A sell-the-news event could become a self-fulfilling prophecy as a significant share of short-term market participants has eyeballed the event as an area for profit taking.”

Lunde put the probability of the sell-the-news scenario at 75% versus a 20% chance of approval, followed by significant …