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HomeNewsBitcoin's Rollercoaster Ride: Analyst Who Nailed 2022 Bottom Sees 35% Drop on...

Bitcoin’s Rollercoaster Ride: Analyst Who Nailed 2022 Bottom Sees 35% Drop on Horizon

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  • A crypto analyst warns that a possible denial of a spot Bitcoin ETF by the SEC could lead to a 37% price drop in Bitcoin.
  • The analyst also suggests that even approval of the ETF could have a bearish impact due to market expectations being already priced in.

Understanding the Potential Impact of a Bitcoin ETF Decision

In the dynamic world of cryptocurrency, the decisions of regulatory bodies like the U.S. Securities and Exchange Commission (SEC) hold considerable sway over market movements. A recent analysis by a prominent cryptocurrency analyst, known pseudonymously as DonAlt, highlights the potential impact of the SEC’s upcoming decision on a spot Bitcoin exchange-traded fund (ETF) on Bitcoin’s (BTC) value.

The Bearish Scenario of ETF Denial

DonAlt, addressing his 56,200 subscribers on the TechnicalRoundup YouTube channel, speculates that a denial of the spot Bitcoin ETF could result in a significant downturn for Bitcoin. He estimates a potential nosedive of approximately 37% from its current level, potentially bringing the price down to the $27,000 to $28,000 range. This decline would essentially erase the gains attributed to the anticipation of the ETF, returning Bitcoin to its pre-ETF hype valuation.

Uncertainty Even with Approval

Conversely, the analyst suggests that even an approval of the spot Bitcoin ETF might not bode entirely well for Bitcoin’s price. While the market generally perceives such approval as bullish, DonAlt argues that much of this optimism might already be reflected in Bitcoin’s current price. Therefore, an approval could lead to a short-term spike, followed by a sell-off as investors capitalize on the price increase. This reaction could potentially drive Bitcoin‘s price down towards the $38,000 range before stabilizing back above $40,000.

Bitcoin’s Price at a Crossroads

As of this writing, Bitcoin is trading at $42,796, hovering in a zone of uncertainty. The market appears to be on the edge, awaiting the SEC’s decision, which could set the tone for Bitcoin‘s trajectory in the immediate future.

In conclusion, the cryptocurrency market, particularly Bitcoin, stands at a critical juncture, with the SEC’s decision on the spot Bitcoin ETF poised to play a pivotal role in determining its short-term price movements. Whether it results in a significant decline or a tumultuous spike followed by a correction, investors and traders alike are bracing for potential volatility in the wake of the SEC’s decision. This situation underscores the complex interplay between regulatory actions and cryptocurrency market dynamics.

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Ralf
Ralf
Ralf Klein is a computer engineer specializing in database technology, and as such, he was immediately fascinated by the possibilities of blockchain when he first heard about it, especially since this distributed, tamper-proof technology can be the foundation for much more than just cryptocurrencies. At ETHNews, he translates the articles of his English-speaking colleagues for the German readers. Business Email: info@ethnews.com Phone: +49 160 92211628
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