The Anticipation of a Spot Bitcoin ETF
If you’re eagerly awaiting the approval of a Spot Bitcoin ETF, economist and crypto trader Alex Kruger has some warnings for you.
The Sell the News Event
According to Kruger, after the expected approval date in January, Bitcoin will likely see an initial surge, followed by a drop below its pre-approval price within two weeks due to profit-taking.
Market Conditions
Kruger points out that the current market is very hot, with altcoins funding at rates between 20% to 60% and Bitcoin’s March futures annualized basis at around 17% to 20%. The launch of the ETF and the strength of inflows could significantly impact Bitcoin prices.
Prepare for January
Kruger advises traders and investors to set alerts for January in case the ETF gets disapproved, as this could cause a rapid collapse. He shared a chart that shows a timeline of the 2021 Bitcoin Futures ETF trade.
Record-Breaking Bitcoin
As of April 2022, Bitcoin has broken records and is currently trading at $45,261.
Hot Take
As the crypto market awaits the potential approval of a Spot Bitcoin ETF, Alex Kruger’s warnings about the potential aftermath should not be taken lightly. Traders and investors should be prepared for significant volatility in the weeks following the approval date, as inflows and market conditions could have a major impact on Bitcoin’s price. It’s essential to heed the advice of experts and closely monitor market developments to make informed decisions.
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