- Venture Capitalist Chris Burniske anticipates a short-term dip in Bitcoin’s value if the U.S. SEC approves a spot market Bitcoin ETF.
- Burniske also foresees a possible sell-off in early 2024, drawing parallels to the market pattern observed in mid-2019.
The Potential Impacts of Bitcoin ETF Approval
Venture Capitalist Chris Burniske, founder of Placeholder Capital, has shared his insights on the possible market dynamics that could unfold following the approval of a spot market Bitcoin exchange-traded fund (ETF). Addressing his substantial social media following, Burniske suggests that the current bullish trend in Bitcoin’s price may not sustain post-ETF approval by the U.S. Securities and Exchange Commission (SEC). This anticipated approval, which is expected around January 10, 2024, could trigger a short-term dip as holders potentially take profits.
A Double-Edged Scenario
Burniske outlines a double-edged situation for Bitcoin‘s near future, hinging on the SEC’s decision regarding the ETF. He proposes two scenarios:
- If the ETF is rejected, a sell-off is likely to occur.
- In the event of approval, the immediate buying surge may wane, as most interested parties would have already invested in anticipation of the approval.
This pattern, according to Burniske, may not immediately translate into significant buying flows, despite the marketing efforts of traditional finance (TradFi) giants. He anticipates a gradual conversion from approvals to actual buying activity.
Drawing Parallels and Looking Ahead
Burniske draws a parallel between the current market situation and the trend observed in mid-2019, where Bitcoin experienced a significant surge only to be followed by a notable decline. He suggests that a similar pattern could emerge in the first quarter of 2024, potentially leading to a “final wipeout” before establishing firmer, higher price lows.
Blockchain’s Role in Market Dynamics
While acknowledging the potential of blockchain technology in driving market cycles, Burniske points out that the industry is not yet poised for a full-scale bull run based solely on product developments. He notes that while there are promising applications and improvements in user experience on the horizon, the quantity and scale are not sufficient at present to attract a new magnitude of users. However, he remains optimistic about the changes expected in the next few quarters.
Bitcoin’s Current Market Position
At the time of writing, Bitcoin stands at $43,932, showing a slight increase over the past 24 hours. This price point comes amidst heightened market anticipation and speculative discussions regarding the future impact of regulatory decisions and product advancements in the blockchain space.