A prominent digital asset venture capitalist believes that the approval of a spot market Bitcoin (BTC) exchange-traded fund (ETF) could ultimately lead to a correction for the king crypto.
Chris Burniske, the founder of Placeholder Capital, tells his 268,800 followers on the social media platform X that the current run-up in Bitcoin’s price may indicate BTC may not have any buyers left to boost its price if an ETF is approved by the U.S. Securities and Exchange Commission (SEC) next month.
He also believes a rejection of the ETF would spark a sell-off.
“That said, still think BTC ETF approval window around January 10, 2024 is a fade:
Marketing machines of TradFi (traditional finance) giants will take time to turn on and convert the approvals into buying flows.
Fade.”
The investor warns that the Bitcoin uptrend may dip like it did in 2019 after a surge, possibly in the first quarter of next year.
“I see we are in the full-send rotation game, Lost track of how many beers deep everyone is. That’s troublesome, but the drinking can easily go into January. My base case still playing out.
‘If BTC and ETH rip here, and then everything else follows, we could be in for a mid-2019 repeat – going just high enough to get people to believe that maybe, just maybe, new ATHs (all-time highs) are around the corner, before enduring a final wipeout (Q1 ‘24?) and putting in firm higher [price] lows.’”
Burniske also says that it may be a while longer before blockchain use cases alone can spark a bull cycle.
“I don’t think we’re ready for a full-blown bull on the product front because there’s still polishing and shipping needed on UX (user experience) and new apps, to usher in the next order-of-magnitude of users. Cool things are surfacing, but not enough in number or scale. The next few quarters will change that.”
Bitcoin is trading for $43,932 at time of writing, up slightly in the last 24 hours.
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