Analyst Predicts BTC Decline After Approval of Spot ETFs
Date: 2023-12-21 Author: Dima Zakharov Categories: BUSINESS, IN WORLD
Spot ETF Approval Anticipation
The cryptocurrency world is abuzz with excitement as the Securities and Exchange Commission (SEC) considers applications for the establishment of spot Bitcoin exchange-traded funds (ETFs). Several industry experts believe that the approval of these funds will inject more liquidity into the digital asset market, potentially influencing Bitcoin's price.
Short-Term Gains, Long-Term Concerns
Renowned blogger and trader John Najarian, a prominent figure in the cryptocurrency community, suggests that Bitcoin's price may surge by 20-30% immediately after the approval of industry-related funds. However, he also foresees a significant dip in value, possibly plummeting to $37,000. In a recent interview with CNBC, he emphasized that this level is expected to act as strong support, with a relatively low likelihood of breaking.
Najarian has confidence in the eventual approval of spot BTC-ETFs, likely in the early part of the upcoming year. Nonetheless, he warns that Bitcoin prices may appear "overheated" in light of this event, potentially prompting profit-taking by traders. This could exert local pressure on the coin and increase the likelihood of a deep correction.
Divergent Expert Opinions
Currently, industry specialists have varying opinions on how the flagship cryptocurrency will react to the introduction of spot funds. For instance, Samson Mow, the founder of startup Jan3, holds a bullish outlook, suggesting that the rapid introduction of industry-related funds could drive Bitcoin's prices to $1 million.
Conversely, expert Nate Gerachi believes that approval of this instrument could lead to a volatile market, potentially causing turmoil for spot crypto exchanges. He argues that market volatility will increase substantially, and not all trading platforms will be able to fulfill their obligations to clients.
