Is the widespread excitement over the potential Bitcoin ETF Approval by the SEC justified, or are we overlooking some inherent risks? While a large number of industry experts are bullish about the implications of this development, a few voices of caution are also emerging, hinting at the possible mid-term threats it might pose.
Altcoins May Suffer a ‘Sell-the-News’ Event
Ran Neuner, the founder of Crypto Banter, suggests that the current frailty of altcoins across all sectors is a sign that the market is perceiving the potential ETF approval in the U.S. as a ‘sell-the-news’ event. This, he believes, could trigger a harsh correction in the near future. The message from the market is clear: the ETF approval could be a sell-the-news event for altcoins.
Neuner points out that the chances of approval are well over 99%, and yet altcoins are showing signs of weakness. He interprets this as a clear indication that the ETF trade, which has been inflating the market for the past 203 days, is now coming to an end.
Impending Market Correction
Neuner further warns that once the ETF narrative completely fizzles out, the cryptocurrency markets could face a painful 20% correction. This could see Bitcoin’s (BTC) price plummeting to $35,000 and Ethereum (ETH) falling below $1,800. However, he also notes that the overall trend remains bullish on higher time frames. The potential 20% ‘flush out’ will merely mark the beginning of the ‘next leg’ for the crypto rally.
Is Bitcoin ETF Approval a Double-Edged Sword?
Neuner is not the only one predicting potential negative effects of the Bitcoin ETF approval. Arthur Hayes, the founder of BitMEX, has expressed concerns that the Bitcoin ETF could undermine the very essence of cryptocurrency by turning it into just another ‘classic’ asset, thereby diminishing the interest in physical BTC.
Max Keiser, a well-known Bitcoiner, echoes Hayes’ apprehensions, adding that the shift of value into Bitcoin ETFs could jeopardize the legal status of Bitcoin (BTC) self-custody. Consequently, the industry should brace itself for an ‘unwelcome surprise’, warns Keiser.
As the crypto market navigates through these potential challenges, platforms like cryptoview.io can provide valuable insights and data to help investors make informed decisions.
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