Although most analysts and professionals are bullish about the possible outcomes of the SEC’s approval of a Bitcoin ETF, other presenters point out possible risks, particularly in the intermediate run. Is the excitement around the Bitcoin ETF exaggerated?
ETF approval will be “sell-the-news” event for altcoins, Ran Neuner says
The market’s treatment of the possible approval of an ETF in the United States as a “sell-the-news” event is seen by the weakening of altcoins across all market categories. According to Ran Neuner, the creator of Crypto Banter, this might potentially trigger a harsh correction in the near future on X.
https://x.com/cryptomanran/status/1743363371255152780?s=20
Therefore, he said, this sharp decline is an obvious indication that the ETF trade that has been driving the market for 203 days is finally finished. He illustrates this frenzy with a chart that is included, showing that it began on June 16, 2023, when American powerhouse BlackRock filed for an ETF.
There might be a severe 20% decline in the cryptocurrency markets once this story totally fizzles out. For example, this may cause the price of Ethereum (ETH) to go below $1,800 and the price of Bitcoin (BTC) to collapse to $35,000.
However, the general trend is still bullish on long time frames; the possible 20% “flush out” will just signal the beginning of the “next leg” of the cryptocurrency rise.
Since Neuner’s revelation, the total market valuation of cryptocurrencies has increased by about 65%.
Why might Bitcoin ETF approval be bad for crypto?
Not just bitcoin specialist Ran Neuner anticipates negative consequences that the approval of a Bitcoin ETF may have on the digital asset market.
The inventor of BitMEX, Arthur Hayes, acknowledged that the Bitcoin ETF poses a risk to the fundamental characteristics of cryptocurrencies by elevating them to the status of “classic” assets and decreasing demand for actual Bitcoin.
In addition, Bitcoiner Max Keiser adds that the legal position of Bitcoin (BTC) self-custody will be in jeopardy due to the shift of value into Bitcoin ETFs, echoing Hayes’ worries.
Keiser cautions that as a result, the sector has to be ready for a “unwelcome surprise.”
