Bitcoin ETF Alert: Forecast for Drop After Approval

Alex Krüger, a renowned economist, shares a cautious outlook on Bitcoin (BTC), the undisputed giant of the sector. Krüger, an analyst with a substantial audience of 158,900 followers on a well-known social media platform, made critical comments regarding the possible approval of the much-awaited Bitcoin exchange-traded fund (ETF) in the spot market.

Krüger outlines a scenario where, despite initial enthusiasm, Bitcoin could face a significant decline. His analysis suggests that the approval of Bitcoin ETFs by the SEC (US Securities and Exchange Commission) could act as a classic “sell in the news” event. According to him, following the expected approval in January, BTC could see an immediate increase in its value. However, this spike would be followed by a wave of profit-taking, negatively impacting prices.

Krüger predicts:

• Approval date: Between January 8th and 10th.
• Immediate Reaction: Increase in approval, driven primarily by the current BTC price climate.
• Development: Drop below the pre-approval point about two weeks after launch, mainly affecting leveraged investors. This decline is attributed to market overheating, with altcoin funding ranging between 20-60% and March Bitcoin futures hovering around 17-20% on an annualized basis.

The economist warns that, although there is no official date for the launch of the ETF, it is likely to happen soon after approval, considering the fierce competition between ETFs.

The fourth phase of Krüger’s scenario is post-launch, where he suggests that robust flows and volumes could reestablish BTC’s upward trend. On the other hand, weak flows or rejection of ETF proposals could trigger a sharp decline. Krüger advises caution and suggests activating alerts in January, especially if there are chances of ETF rejection, which could lead to a rapid collapse in prices.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.