Divergent views are emerging among cryptocurrency researchers and specialists as the U.S. Securities and Exchange Commission (SEC) approaches its decision to establish a Bitcoin ETF. Concerns about the near future of cryptocurrency markets have been brought up by Crypto Banter founder Ran Neuner.
After a protracted period of anticipation fueled by the prospect of an ETF, Neuner highlights a potential “sell-the-news” occurrence that might cause a market correction. The market has grown significantly since June 16, 2024, when BlackRock filed for an ETF, he says, but he cautions that this trend could unexpectedly turn around.
According to Neuner’s research, the market’s recent performance—especially the weakness of altcoins—may portend an impending correction. He predicts that the values of popular cryptocurrencies like Bitcoin and Ethereum might drop by 20%, to $35,000 and $1,800, respectively. Neuner continues to have a bullish long-term outlook despite these short-term worries, speculating that any upcoming correction would only be a consolidation stage prior to the next surge.
Concerns over the impact on cryptocurrency’s nature
Beyond market dynamics, the fundamental nature of cryptocurrencies is being discussed in relation to the Bitcoin ETF. Arthur Hayes, the creator of BitMEX, expressed concerns that the ETF would turn Bitcoin into a more conventional asset class. As per Hayes, this change may lessen the appeal of having physical Bitcoins, changing the basic characteristic that has distinguished cryptocurrencies and drawn in investors.
Prominent Bitcoin supporter Max Keiser expresses similar worries over the ETF’s potential legal ramifications to Hayes. He issues a warning, arguing that the shift to Bitcoin ETFs may jeopardize the legitimacy of Bitcoin self-custody, a fundamental component of the cryptocurrency movement. Keiser claims that this change might come as a “unwelcome surprise” to the business and have a significant impact on how Bitcoin is handled and traded.
The future outlook for cryptocurrencies after the approval of the Bitcoin ETF
In the realm of cryptocurrencies, the SEC’s possible approval of a Bitcoin ETF is a historic development that might signal big changes. The industry’s long-term growth possibilities are acknowledged, even though certain experts, like Hayes and Neuner, highlight the risks and the possibility of short-term market disruptions. The endorsement might draw in a new group of investors and broaden the use of cryptocurrencies in society.
Keiser notes that certain fundamental tenets of cryptocurrencies, such decentralization and self-custody, may be sacrificed in the process of this change. In order to maintain its essential ideals while weighing the advantages of wider acceptability, the industry may need to adjust to these developments.
The cryptocurrency world is facing a decision as the SEC’s ruling on the Bitcoin ETF approaches. The clearance presents problems and possible changes to the market and the nature of cryptocurrencies, even though it may also bring in a new phase of expansion and widespread recognition. In order to maintain the essence of what makes cryptocurrencies special in the quest for wider adoption, stakeholders in the crypto sector will need to carefully negotiate these changes as the scenario develops.
