Alex Krüger warns BTC might ‘Send Prices Breaking’ after Spot Bitcoin ETF Approval


The approval of a spot market exchange-traded fund (ETF) has widely followed economist Alex Krüger’s warning that Bitcoin (BTC), the crypto king, may fall.

The analyst informs his 158,900 X-followers in a long thread that he thinks the approval of spot market Bitcoin ETFs by the US Securities and Exchange Commission (SEC) will be a sell-the-news event.

According to Krüger, the market-leading cryptocurrency asset will experience a sharp increase after the anticipated clearance date in January, but investors will quickly cash out.

“Basis case scenario for Bitcoin ETFs: 1) January 8th until the 10th. 2) Prompt response: pending permission (justification: now 90% priced-in).

3) Follow-up: at least two weeks after the launch, get any late-leveraged monkeys up to speed (the market is now quite hot, with altcoin financing ranging from 20–60% and Bitcoin’s March futures annualized base at 17–20%).

Take note that the debut date is still up in the air; it might be days after approval or much later; nonetheless, with so many ETFs competing, it seems logical to begin sooner rather than later.

According to the economist, strong inflows after the creation of an ETF might assist in driving up the price of BTC. But he warns that the main digital asset can fall in value if inflows are poor or if ETF proposals are rejected.

4) After launch, if volume and inflows are substantial, the upward trend will be reinstated; if they are poor, prices will tumble as leading bidders dump into a few offers. You should know that if the ETF is rejected, prices will fall quickly. It might be wise to enable notifications in January.”

The price of Bitcoin has increased somewhat over the last day and is now trading at $42,529 as of this writing.

Also Read: The Creator of Dogecoin Reveals His Year-End Reason for Joining Twitter

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