The Potential Impact of a Spot Bitcoin ETF Approval
Gareth Soloway, an analyst and Chief Market Strategist, believes that the potential approval of a spot Bitcoin Exchange-traded fund (ETF) could trigger a price correction. He suggests that if Bitcoin continues to rise, it may not go higher once the approval is granted. Soloway argues that the crypto market may already be factoring in the ETF approval, which could paradoxically lead to a sell-off and dampen the current momentum. He projects that the maximum upside for Bitcoin in this bull phase could reach around $47,000, which could be the next resistance level.
Additionally, Soloway suggests that institutional ETF players may have already accumulated Bitcoin in anticipation of an eventual spot ETF approval. This could result in fewer buyers once the spot Bitcoin ETF is launched.
Predictions for 2024: Economic Recession and Crypto
Looking ahead to 2024, Soloway takes a broader macroeconomic stance and predicts an impending economic recession. He also anticipates a stock market correction of around 35%, which could significantly impact Bitcoin. In such a scenario, fear and panic might lead even Bitcoin holders to sell their holdings.
Soloway highlights soaring credit card debts, skyrocketing interest rates, and the risky state of several banking institutions as factors contributing to his bleak economic outlook. He refers to these institutions as “zombie banks” operating with unsustainable assets on their balance sheets.
Bullish Sentiment on Gold
Despite the grim financial outlook, Soloway remains bullish on gold and predicts new all-time highs for the precious metal. He suggests aligning with central banks that oversee monetary policies as they are loading up on gold. Soloway concludes that if central banks are investing in gold, it may be wise to do the same.
Hot Take: Bitcoin’s Future Hangs in the Balance
Gareth Soloway’s analysis offers valuable insights into the potential impact of a spot Bitcoin ETF approval and the broader economic factors that could affect Bitcoin in the coming years. While the approval of a spot ETF may initially boost Bitcoin’s price, there is also a possibility of a sell-off due to pre-emptive accumulation by institutional players. Furthermore, Soloway’s predictions of an economic recession and stock market correction raise concerns about Bitcoin’s performance during such downturns. However, his bullish sentiment on gold suggests that alternative assets like precious metals may provide stability in uncertain times.
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