Economist Alex Krüger issues a BTC warning, saying it could lead to a “price crash” following the approval of the spot Bitcoin ETF
Widely followed economist Alex Krüger is warning traders about Bitcoin (BTC), saying the crypto king could crash following the approval of a spot exchange-traded fund (ETF).
In a long thread, the analyst shared with his 158,900 followers on the social media platform
According to Krüger, the top crypto asset by market cap will see an immediate surge after the expected approval date in January, but the rally will involve profit-taking.
“Bitcoin ETF base case:
#1 When: 8th-10th January
#2 Immediate reaction: until approval (reason: currently 90% priced in)
#3 Follow-up: Drop below pre-approval point at launch approximately 2 weeks later, eliminate all late leveraged monkeys (reason: market). [is] Things are very hot right now, with altcoin funding at 20-60% and Bitcoin March futures annual basis at around 17-20%.
Note that there is no official launch date. It could be days after approval or much later, although given the number of ETFs in the running, sooner rather than later makes more sense.”
The economist says strong inflows following the launch of an ETF could help push up the price of BTC. However, if inflows are weak or ETF bids are rejected, he believes it could lead to a crash for the flagship digital asset.
“#4 Post-launch: Strong inflows/volumes restore the uptrend (or, if weak, cause prices to crash as front-runners forego few bids). Be warned that if the ETF is accidentally rejected, prices will collapse quickly. It’s a good idea to activate alarms in January.”
Source: Alex Kruger/X
Bitcoin is trading at $42,529 at the time of writing, up slightly in the last day.
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