A top crypto trader is revealing his forecast for the flagship crypto asset if a hotly anticipated Bitcoin (BTC) investment product gets the regulatory nod.
Pseudonymous analyst DonAlt tells 53,000 subscribers of the TechnicalRoundup YouTube channel that Bitcoin could rally modestly if a spot BTC exchange-traded fund (ETF) is authorized in the United States.
“If the ETF was approved, I think we’d just see like a candle like this [shooting up]… pretty much just straight up like 10%, 20% candle. And the aftermath would be interesting.
But you would basically get the same thing that we had here… so if you look in the five-minute chart, you had the Grayscale news come in and that was the result [a jump from around $26,000 to over $27,600 in under 30 minutes]…”
Earlier this week, a U.S. court unanimously ruled that the U.S. Securities and Exchange Commission (SEC) has to reconsider a Bitcoin ETF application by Grayscale, a move that coincided with BTC going up by over 5%.
DonAlt says that after Grayscale’s victory, the chances of a Bitcoin ETF getting approved are now close to 100%, albeit with inevitable delays.
“The good thing about yesterday is that the ETF seems to be pretty much a done deal to me.
There’s a very, very slim chance that it’s just going to be denied. I think it’s going to be delayed, delayed, delayed until it’s approved. That’s kind of my base case.”
Bitcoin is trading at $27,206 at time of writing.
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