A Bitcoin ETF Approval Could Cause a Dip in BTC Price, Says Venture Capitalist
A prominent digital asset venture capitalist, Chris Burniske, believes that if a spot market Bitcoin (BTC) exchange-traded fund (ETF) is approved by the U.S. Securities and Exchange Commission (SEC) next month, it could cause a dip in the price of the king crypto. Burniske suggests that the current price run-up in Bitcoin may indicate that holders will take profits if the ETF is approved, leading to a short-term dip. However, he also notes that a rejection of the ETF could spark a sell-off.
Bitcoin Uptrend May Dip in Q1 2024
Burniske warns that the Bitcoin uptrend may experience a dip similar to what happened in 2019 after a surge. He predicts this dip could occur in the first quarter of next year. He believes that if BTC and ETH experience significant price increases, followed by other cryptocurrencies, it could lead to a scenario similar to mid-2019. This scenario would create anticipation of new all-time highs before enduring a final wipeout and establishing higher price lows in Q1 2024.
Blockchain Use Cases Need More Polishing for Bull Cycle
Burniske suggests that it may take more time before blockchain use cases alone can trigger a full-blown bull cycle. He believes there is still work needed in terms of user experience (UX) and new applications to attract a significant increase in users. While interesting developments are emerging, they are not yet numerous or scalable enough to bring about the next wave of users. Burniske expects these changes to occur over the next few quarters.
Bitcoin Price Update
At the time of writing, Bitcoin is trading at $43,932, showing a slight increase in the last 24 hours.
Hot Take: Spot Bitcoin ETF Approval Is an Event To Fade
Venture capitalist Chris Burniske believes that if a spot market Bitcoin ETF is approved, it could lead to a temporary dip in BTC price. He suggests that current holders may take profits, causing a short-term sell-off. On the other hand, if the ETF is rejected, it could also trigger a sell-off. Burniske warns of a potential dip in the Bitcoin uptrend similar to what occurred in 2019, possibly happening in Q1 2024. He also notes that blockchain use cases need more polishing before they can drive a full-blown bull cycle. Overall, he advises caution and expects changes to unfold over the next few quarters.
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