Experts say the approval of a Bitcoin ETF could bring a dramatic decline for cryptocurrencies

Vladislav Sopov

Crypto Banter's Ran Neuner, CNBC expert and veteran cryptocurrency commentator, is pessimistic about the impact of a possible ETF approval

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While the majority of experts and analysts are optimistic about the possible impact of the SEC's Bitcoin ETF approval, some speakers point to potential threats that it may pose, especially in the medium term. Is the euphoria surrounding the Bitcoin ETF too exaggerated?

According to Ran Neuner, the ETF approval will be a “sell-the-news” event for altcoins

The weakness of altcoins across all segments is evidence that the market views the possible ETF approval in the US as a sell-the-news event. Therefore, a painful correction could happen very soon, says Ran Neuner, founder of Crypto Banter on X.

Therefore, he added, this dramatic weakness is a clear signal that the ETF trading that has driven the market for 203 days has now come to an end. In an attached graphic, he shows that this madness began on June 16, 2023, when US heavyweight BlackRock submitted an ETF application.

Once this narrative completely loses traction, cryptocurrency markets could experience a painful 20% correction. For example, this could cause the price of Bitcoin (BTC) to fall to $35,000 and Ethereum (ETH) to fall below $1,800.

At the same time, the overall trend remains bullish on high time frames: the potential 20% “flush-out” will only indicate the beginning of the “next leg” of the crypto rally.

Since the announcement mentioned by Neuner, the total capitalization of the cryptocurrency markets has increased by almost 65%.

Why could approving a Bitcoin ETF be harmful to cryptocurrencies?

Ran Neuner is not the only cryptocurrency expert predicting a negative impact of Bitcoin ETF approval on the digital asset space.

BitMEX founder Arthur Hayes admitted that the Bitcoin ETF could be dangerous for the nature of the cryptocurrency as it turns it into another “classic” asset and reduces interest in physical BTC.

Additionally, Bitcoiner Max Keizer, echoing Hayes' concerns, adds that shifting value into Bitcoin ETFs will threaten the legal status of Bitcoin (BTC) self-custody.

Therefore, the industry should be prepared for an “unwelcome surprise,” warns Keizer.

About the author

Vladislav Sopov

Blockchain analyst and author with a scientific background. 6+ years in IT analytics, 3+ years in blockchain.

Participation in independent analysis and start-ups (Swap.online, Monoreto, Attic Lab etc.)

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
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