Bitcoin May See a Potential Crash After ETF Approval: Alex Kruger

As the highly anticipated approval of a Spot Bitcoin ETF draws near, economist and crypto trader Alex Kruger has warned investors and traders.

Here is what you should know according to his privileges.

The Sell the News Event

Kruger predicts that Bitcoin will initially surge following its expected approval date in January. Still, this rally will be followed by a drop below its pre-approval price within two weeks as profit-taking sets in.

Market Conditions

Kruger explains that the current market is very hot, with altcoins funding at rates between 20% to 60% and Bitcoin’s March futures annualized basis at around 17% to 20%.

If the ETF launches soon after approval and inflows are strong, it could help push Bitcoin prices higher. Similarly, if inflows are weak and ETF bids are rejected, Bitcoin could plummet.

Kruger also alerted traders and investors to set alerts for January in case the ETF gets disapproved, as this could cause a rapid collapse. He shared a chart that shows a timeline of the 2021 Bitcoin Futures ETF trade.

Bitcoin is trading at $45,261 and this price boost shows ETF gets approved. Bitcoin will definitely take a flight, but at the time of writing, it was trading at $42,529, and this rapid boost shows the approval is close.

Since April 2022, this is the first time Bitcoin has broken records, and currently, it is trading at $45,261.