Bitcoin ETF approval by the SEC has been a hot topic for some time now and it is predicted that it will start the bull run if it gets approved in 2024 Q1 but it can also result in a major crypto rug pull if the SEC rejects Bitcoin ETF.
But how?
Let’s find out how.
Table of Contents
Fully Explained Analyst’s View on Major Crypto Rug Pull if SEC Rejects BTC ETF
The cryptocurrency market is preparing for a crucial stage as the SEC’s verdict on Bitcoin ETFs approaches. The crypto community is anxiously awaiting the SEC approval of a physically-backed Bitcoin exchange-traded fund (ETF).
Notably, analyst Nate Geraci has shared insights on the potential consequences of the SEC’s ruling, predicting a considerable market retreat if the ETF doesn’t get the green light.
He remarked, “Should the spot bitcoin ETF face rejection in January, it could lead to one of the most significant rug pulls in crypto history.” Nevertheless, Geraci maintains a strong belief in the nearly 100% likelihood of the SEC approving such a product.
His viewpoint related to the rug pull is very considerable because if the market can experience a bull run on approval of the ETF, it can act otherwise and lead to a bearish season if the ETF is rejected. Looking forward to the Q1 and tentative date of SEC approval, the current scenario leads to this viewpoint.
Trends in Cryptocurrency Market
The imminent decision, slated for next month, holds considerable significance for the merging of cryptocurrencies and traditional finance. This critical deadline follows a recent upswing in the cryptocurrency market, with Bitcoin crossing $45,000 for the first time since 2022.
The market’s optimism emerges from expectations that the SEC will approve the ETF applications submitted by institutions like Cathie Wood’s ARK Investment and 21Shares.
A favorable outcome would be a significant catalyst for the crypto industry, still recovering from the 2022 FTX exchange collapse. Major players such as BlackRock, Invesco, and Fidelity have joined in, contributing to positive sentiments.
Bloomberg Intelligence estimates that the spot Bitcoin ETF market could evolve into a $100 billion powerhouse, drawing parallels to the early 2000s adoption of gold ETFs.
Crypto Market at Crossroad
Despite the positive outlook, the market remains at a central point, with Bitcoin’s current value hanging around $40,000 according to CoinGecko data. The rejection of ETFs by the SEC could trigger a significant downturn, placing the market at a crossroads where the SEC’s decision has the power to either strengthen or shake the fledgling market.
Conclusion
To conclude, SEC approval for BTC ETF awaits and it can cause a major crypto rug pull in case of rejection but this is what is being predicted by analysts. It can also start a bull run if it gets approved. The market sentiments are positive towards the anticipated approval but the market is at the point where the SEC’s decision will decide the fate of the crypto market which will either be bullish or bullish but nothing can be said precisely until the final decision of the SEC.
Note: It’s a research based article not a financial advice.
- Follow our Twitter Account for Daily Insights on Technology
- https://twitter.com/IronedTech
- Don’t Forget more News and Research articles at
- https://techironed.com/