The crypto community is abuzz with anticipation as a Bitcoin Exchange Traded Fund (ETF) approval by the U.S. Securities and Exchange Commission (SEC) seems imminent. However, experts like Ran Neuner, founder of Crypto Banter and CNBC analyst, warn of potential threats accompanying this milestone. They suggest a “sell the news” event could be looming, particularly for altcoins, which have shown weakness in various segments.
Neuner’s analysis, informed by the market’s reaction since BlackRock’s ETF application on June 16, 2023, indicates that the 203-day frenzy following the ETF narrative might be ending. He cautions about a significant correction, potentially leading to a 20% drop in Bitcoin’s price to $35,000 and Ethereum falling below $1,800.
Despite these concerns, Neuner believes the broader trend remains bullish over longer time frames. He views the potential correction as a necessary precursor to the next leg of the crypto rally.
Neuner isn’t alone in his skepticism. BitMEX founder Arthur Hayes has expressed concerns that an ETF approval could make Bitcoin more of a traditional asset, potentially reducing interest in Bitcoin’s physical form. Bitcoin advocate Max Keiser warns that the flow of value into Bitcoin ETFs could challenge the principle of self-custody.
As experts like Neuner, Hayes, and Keiser issue warnings, the crypto industry faces a critical juncture. While many celebrate the potential ETF approval, others approach it with caution, prepared for unwanted surprises. The volatile and unpredictable nature of the crypto space requires a nuanced understanding of the potential challenges and opportunities presented by the upcoming Bitcoin ETF decision.