Alex Kruger Suggests Potential Bitcoin Crash Following ETF Approval

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Key Takeaways
Renowned economist and crypto trader Alex Kruger predicts a Bitcoin market crash following the approval of a Spot ETF.
Kruger warns that if the ETF approval is rejected, it could lead to a significant decrease in Bitcoin’s value.
As the highly anticipated approval of a Spot Bitcoin ETF approaches, economist and crypto trader Alex Kruger offers cautionary advice to investors and traders.
Here is what you need to know, according to Kruger.

The “Sell the News” Phenomenon
Kruger predicts that following the expected approval of the Bitcoin ETF in January, the price of Bitcoin will initially soar. However, within two weeks, profit-taking will cause the price to drop below its pre-approval level.

Market Conditions
Kruger explains that the current market is extremely active, with altcoins experiencing funding rates ranging from 20% to 60%, and Bitcoin’s March futures annualized basis hovering between 17% to 20%.
If the ETF launches shortly after approval and attracts significant investment, it could drive Bitcoin prices even higher. Conversely, if inflows are weak and ETF bids are rejected, Bitcoin could experience a sharp decline.
Kruger advises traders and investors to set alerts for January in case the ETF is disapproved, as this could result in a sudden market collapse. He provides a chart illustrating the timeline of Bitcoin Futures ETF trading in 2021.

Bitcoin is currently trading at $45,261, indicating a positive response to the anticipated ETF approval. However, at the time of writing, it has dropped to $42,529, suggesting that the approval may be imminent.

Bitcoin has broken records for the first time since April 2022 and is currently valued at $45,261.

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Bitcoin ETF