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<p>Prominent crypto analyst McKenna, with over 70k Twitter followers, recently <a href="https://x.com/Crypto_McKenna/status/1740360097212109052?s=20" target="_blank" rel="noopener noreferrer nofollow">predicted</a> that the long-awaited approval of Bitcoin spot ETFs in the U.S. could actually trigger a market sell-off event. Here’s a closer look at his rationale:</p>
<p>In a recent tweet, McKenna stated <em>“I’m around 70-80% confident that the approval of filed Bitcoin spot ETFs will be a sell the news event.”</em> He points to data showing that since BlackRock filed for a Bitcoin ETF on June 16th, open interest in CME Bitcoin futures has skyrocketed by over $3 billion.</p>
<p>As McKenna explains, <em>“These positions need to unwind and I think many who were buying post FTX insolvency will begin to de-risk some of their position.” </em>In other words, investors who piled into Bitcoin after the FTX crash to buy the dip may decide to take profits if the ETF news boosts prices.</p>
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<p>Specifically, McKenna predicts <em>“we should see a 20-30% selloff with market wide de-risking across the board.” </em>The logic is that euphoria over the ETF approvals could trigger a short-term Bitcoin price peak, leading opportunistic investors to sell into that strength. This could then spiral into a broader deleveraging event.</p>
<p>While McKenna sees potential downside short-term, he remains constructive long-term. As he notes, <em>“Post selloff expect Ethereum &amp; its beta to outperform in Q1 2024.”</em> So once the volatility settles, altcoins could begin outshining Bitcoin as investors rotate into higher risk-reward plays.</p>
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<p>In summary, McKenna cites heavy futures positioning and post-FTX euphoria as reasons why ETF approvals may catalyze a tactical market reversal. For crypto investors, being aware of this possibility could help navigate volatility around these pivotal regulatory developments.</p>
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<p>The post <a href="https://captainaltcoin.com/veteran-crypto-trader-issues-stark-bitcoin-etf-warning-citing-80-confidence-of-coming-btc-crash/" rel="noopener noreferrer nofollow">Veteran Crypto Trader Issues Stark Bitcoin ETF Warning, Citing 80% Confidence of Coming BTC Crash</a> appeared first on <a href="https://captainaltcoin.com" rel="noopener noreferrer nofollow">CaptainAltcoin</a>.</p>

Veteran Crypto Trader Issues Stark Bitcoin ETF Warning, Citing 80% Confidence of Coming BTC Crash

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