The crypto market has been riding high on a wave of optimism following Blackrock’s Bitcoin Spot ETF filing.
Daan (@DaanCrypto), a well-known analyst, has offered some insightful speculation on the potential market implications of this significant move in a series of posts on Twitter.
Crypto Slowdown Expected
The SEC has an initial 45-day window to either greenlight, reject or defer a decision following the filing of a new ETF. Given the sensitive nature of cryptocurrencies, it is unlikely that any substantial verdict will be made prior to the full 240-day grace period. Daan anticipates a postponement of the decision beyond the initial 45-day period.
If Bitcoin continues its upward trajectory over the subsequent weeks, the market may experience a lull due to this expected delay. This potential slowdown might be perceived as a setback for the market’s momentum, especially after such a robust rally.
What Does History Tell Us?
Looking at the broader picture, Daan outlines a scenario in which the market continues to surge on the back of this ETF buzz, followed by a minor letdown in the short term. This could lead to a sluggish remainder of the year, only for the enthusiasm to be reignited closer to the final decision deadline.
Interestingly, this pattern aligns with the market’s typical four-year cycle and is reminiscent of the market fluctuations witnessed in 2019. The 2019 chart, starting in June and ending pre-Covid in March 2020, bears remarkable resemblance to Daan’s hypothesized progression, especially around the ETF decision dates.
Playing the Waiting Game
The final outcomes will undoubtedly hinge on whether the ETF is approved. However, this predicted price behavior seems to align well with previous market trends. Although the SEC’s verdict on the Bitcoin Spot ETF is still up in the air, the analyst’s insights offer a fascinating preview of the thrilling ride that could be in store for the crypto world.
The key question remains: how high can Bitcoin climb on this renewed hope, and how will it react to the SEC’s impending decision?