Renowned economist Alex Krüger is cautioning traders in the crypto market about potential volatility in Bitcoin (BTC) following the approval of a spot market exchange-traded fund (ETF). With a significant social media following of 158,900 on the platform X, Krüger predicts that the anticipated approval of spot market BTC ETFs by the U.S. Securities and Exchange Commission (SEC) will trigger a “sell-the-news” event.
According to Krüger’s analysis, Bitcoin’s market cap will initially surge after the expected approval in January. However, this rally is likely to be met with profit-taking, leading to a subsequent drop below the pre-approval point around the time of the ETF launch. Krüger highlights that significant inflows post-ETF launch could potentially drive the price of BTC upwards. However, weak inflows or rejected ETF bids might lead to a significant downward correction in the price of the flagship digital asset.
Krüger’s insights shed light on the potential impact of ETF approval on BTC’s price movements, serving as a valuable warning to traders and investors in the crypto space. The economist advises caution and recommends setting alerts in January, particularly around the anticipated approval date, to monitor market developments closely.
At the time of writing, Bitcoin is trading at $42,529, showing a marginal increase within the last 24 hours. As the crypto industry awaits the approval of a spot market BTC ETF, Krüger’s analysis provides valuable foresight into the potential market dynamics that may unfold post-approval, equipping industry professionals with crucial insights for informed decision-making.
