Widely followed economist Alex Krüger is warning traders about Bitcoin (BTC), saying the crypto king could crash after the approval of a spot market exchange-traded fund (ETF).
In a long thread, the analyst tells According to his 158,900 followers on social media platform
According to Krüger, the top crypto asset by market capitalization will immediately rise after the expected approval date in January, but the rally will be accompanied by profit-taking.
“Bitcoin ETF Base Case:
#1 When: January 8 – January 10
#2 Immediate response: up after approval (reason: currently 90% priced in)
#3 Follow-up: Get below pre-approval point at launch ~2 weeks later, clearing out any monkeys with late livers (Rationale: Market [is] very popular right now, with altcoins funding in the 20-60% range, and Bitcoin’s March annualized futures around 17-20%).
Please note that there is no official date for the launch. It could be days after approval, or much later, but given the number of ETFs in the race, it makes more sense sooner rather than later.”
The economist says strong inflows following the launch of an ETF could help BTC’s price rise. However, if inflows are weak or ETF bids are rejected, he said, it could cause the flagship digital asset to plummet.
“#4 Post-launch: Strong inflows/volume restores the uptrend (or, if weak, crashes prices as frontrunners have to dump in a few bids). Be warned: if the ETF happens to be rejected, prices will quickly collapse. Good idea to enable alerts in January.”
Bitcoin is trading at $42,529 at the time of writing, up marginally over the past day.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney