What if Bitcoin ETF is not Approved
Whereas optimism is high as regards the approval of Bitcoin ETF which could be a milestone for investor to come in. Bitcoin topped $42,000 in December 2023 and the yearly gain compared from 2021 to date is 160%. One major factor at play was the hope to list Bitcoin ETF which is a very progressive discussion between the Asset managers and the Securities and exchange commissions.
When we plan we plan for possible eventuality and please do not consider this negative bias. Wisdom Tree, BlackRock etc. has meet the criterial as said and are waiting for a positive signal. Should we bank on it. The question is still pondering in my mind if it doesn't go as suggested or the approval is denied what then happens?
I can only see a sudden fall if Bitcoin ETF is not approved and you may as well add your input on this. However, from now till 2026 will be promising for BTC as there would be favorable outcome. It is a game of patience.
The question is: what is the reason for the fall of Bitcoin? Because when it was Matixport's report that the SEC would reject all spot bitcoin ETFs, they agreed with their interview. Well, the report they made is actually contradictory. Why?Because on January 2, 2024, they said,
"Bitcoin Spot ETF Approval Is Imminent, Btc to Jump to $50,000." Then they followed up with a report again on the same day and date, saying in their report,
"Why will the SEC reject Bitcoin sport ETF's again?".
But K33 Research Senior Analyst believes that it is not because of the flash crash report but because of overleveraging in the market. Because the funding rates and future premiums have gone up by 50%, So the report only served as a catalyst to wash out the overleverage of the long position, so the price dropped almost 10%, so many liquidated.
And many analysts are against Matrixport's report because it is unlikely that the SEC will approve the bitcoin spot ETF because the SEC will be sued if they reject it.