While the anticipation for Bitcoin Exchange-Traded Fund (ETF) approval by the SEC has created a wave of optimism, not all experts share the sentiment. Ran Neuner, founder of Crypto Banter and a seasoned cryptocurrency commentator, warns of potential threats that might accompany this milestone, especially in the midterm.
Sell-the-News Scenario for Altcoins
Contrary to the prevailing optimism, Neuner suggests that the market is treating the potential ETF approval as a “sell-the-news” event, particularly impacting altcoins. He notes a significant weakness in various altcoin segments, signaling a potential shift in market dynamics. Neuner believes that this weakness is a clear indicator that the 203-day ETF trade frenzy, initiated with BlackRock’s ETF filing on June 16, 2023, might be coming to an end. This, he suggests, could trigger a substantial 20% correction in the cryptocurrency markets.
Projected Price Corrections
The market is telling you that the ETF approval will be a sell the news event for altcoins. The probability of approval is above 99% and altcoins are weak.
This is a clear signal that the ETF trade that has pumped the market for 203 days in now over. We will probably get a… pic.twitter.com/SqNBSLSKWr
— Ran Neuner (@cryptomanran) January 5, 2024
Neuner’s chart depicts a potential scenario where Bitcoin’s price could drop to $35,000, and Ethereum might dip below $1,800 in the wake of the anticipated correction. Despite the short-term challenges, Neuner emphasizes that the overall trend remains bullish on higher time frames. The projected 20% correction, according to Neuner, could mark the commencement of the “next leg” in the broader crypto rally.
Bitcoin ETF’s Impact on Crypto Nature
Neuner is not alone in expressing concerns about the implications of Bitcoin ETF approval. BitMEX founder Arthur Hayes and Bitcoiner Max Keiser share apprehensions about the ETF turning Bitcoin into a more conventional asset. Hayes warns that it might diminish interest in physical BTC, while Keiser echoes similar concerns and highlights potential dangers to the legal status of Bitcoin self-custody. Both experts caution the industry to be prepared for possible “unwelcome surprises” resulting from this shift.
As the crypto community eagerly awaits the SEC’s decision on Bitcoin ETF approval, experts like Ran Neuner, Arthur Hayes, and Max Keiser emphasize the need for a cautious approach. While many anticipate positive outcomes, the potential sell-off in altcoins and concerns about the changing nature of Bitcoin highlight the nuanced challenges that might accompany this significant development in the cryptocurrency space.