- Mike McGlone says that after pumping for months in anticipation of a spot ETF, Bitcoin will now start to dump in line with other risky assets that are heading for a correction.
- The ETF continues to be the defining moment for Bitcoin, with reports that BlackRock has set aside $2 billion, even as fee wars between the issuers continue.
The spot ETF has been the biggest headline maker in the Bitcoin world, overshadowing even the upcoming BTC halving in April. Analysts have been making predictions on what happens after the ETF is approved by the SEC, and according to Bloomberg’s Mike McGlone, we’re heading for a correction whether the SEC gives its nod or dismisses it.
Bitcoin is trading at $46,490 after a 5.4% gain over the past day, its highest level since April 2022. Its volume has surged 66% to hit $40 billion as the SEC’s ETF decision edges ever closer.
However, according to James Lavish, a veteran trader and analyst with over three decades of experience, Bitcoin could still surge higher once the ETF launches. Lavish, the managing partner of the Bitcoin Opportunity Fund, stated in an interview with “Wolf of All Streets” Scott Melker that there are billions of dollars awaiting the ETFs to bet on BTC.
There’s an insane amount of liquidity sitting on the sidelines – the ETF will give this money a home, and the digital gold narrative will drive it all.
Listen to the master @jameslavish pic.twitter.com/vEvHHKQlwM
— The Wolf Of All Streets (@scottmelker) January 8, 2024
In the interview, which also involved Bloomberg’s McGlone and CoinRoutes CEO David Weisberger, Lavish stated:
There’s so much money on the sidelines that understands Bitcoin enough and wants to have some access to it but just can’t, especially in the RIA world.
The Big Dip and Eventual Recovery for Bitcoin
Weisberger acknowledged that Bitcoin is likely to dip in the short term despite the ETF approval
McGlone, who’s the senior commodity strategist at Bloomberg Intelligence, concurred. He foresees BTC shedding some of the gains of the past few months as the market cools down. He stated:
Risk assets have to go down. That’s what’s missing. And Bitcoin is one of the riskiest assets.
For McGlone, the SEC’s decision will be irrelevant regarding Bitcoin’s dip. If the agency approves the ETF, a “sell the news” phenomenon will ensue, and the speculators will offload the BTC they have accumulated. If the agency rug pulls the industry—which the three panellists say is a real possibility—then the FUD that will spring up will also lead to a dip in the price of the world’s largest cryptocurrency.
The panellists dismissed former BitMEX CEO Arthus Hayes’ recent thinkpiece in which he argued that the RRP has been a massive contributor to crypto liquidity and that a 30% correction is due as the RRP dries up.
Additionally, they talked about the fee wars between the ETF issuers. As CNF reported, the leading ETF applicants are competing on who can offer the best fees, with some, like Galaxy and Invesco, waiving the fees altogether for the first $5 billion. BlackRock has yet to reveal its fees, while Fidelity has set its own at 0.39%.
