Bitcoin was back to its volatile self yesterday, bringing down most other coins too, although a recovery its already underway. The fall was triggered by 2 events. Firstly, Matrixport tweeted a report forecasting the SEC would reject all spot BTC ETF applications this month, and secondly, Blackrock were supposed to seed their BTC Spot ETF with an initial $10 million but did not do so.
Both events have since been dismissed as FUD, as the Matrixport report had no hard evidence to back up their claims, and Blackrock made an announcement late yesterday that will seed their BTC ETF on the 5th January.
Many of the leading crypto analysts still believe we’ll see Bitcoin Spot ETF approved before the 10th and I share their point of view, although I would not be surprised to see a short delay.
In regards to the current crypto cycle, I think far too much emphasis is being placed upon Spot ETF approvals. In all honesty, Id prefer a normal cycle without all the hype the ETFs seem to be generating.
If Bitcoin Spot ETFs are not approved, then of course we are going to see some volatility and all cryptos drop in the short term. But remember, the Bitcoin Halving is in April, and a few months after the halving we have ALWAYS have a crazy bull-run.
In regards to approval for Bitcoin ETFs, then many suggest we’ll see another drop as many will “sell the news”, but I don’t agree. The likes of Blackrock, Fidelity, Ark and other leading US investment companies are going to be fighting each other for a big slice of the Bitcoin ETF pie, so any fall in the Bitcoin price should be very short term as Bitcoin will get publicity its never had before.
All the leading applicants have had several meetings with the SEC, have named their APs (brokers) and some have even produced TV commercials, so to say the least, Bitcoin ETFs approval seems imminent.
Rather than worry about retail investors selling the news and crashing all crypto, I’m far more concerned with the price of Bitcoin going parabolic and in turn negating the effects of the halving.
I think with positive ETF approval news, Bitcoin will smash through $50k and could even top $100k, even before the halving.
And if it does. then we are literally in financial “no mans” land. as Bitcoin Miners could well sell their mined Bitcoin after the halving, rather than hoard them, as they always have done after a halving. And remember if Bitcoin goes on a parabolic run so will most other leading coins too!
