DonAlt, a well-known crypto analyst, has issued a stark warning about the potential impact of the U.S. Securities and Exchange Commission’s (SEC) decision on a spot Bitcoin exchange-traded fund (ETF).
Bitcoin’s $38,000 Warning!
The popular analyst DonAlt, in his statements on Youtube, analyzed how this decision could lead to a significant drop in the value of Bitcoin. DonAlt suggests that if the SEC rejects the spot Bitcoin ETF, Bitcoin could fall by about 37% from its current level. He believes such a scenario would damage the market structure established between $33,000 and $38,000.
The analyst traces the origin of the recent surge to around $24,000 and attributes the rise from $27,000-$28,000 almost entirely to the anticipation of the ETF. According to DonAlt, a rejection could lead to a reversion of Bitcoin’s price to these levels and potentially drop to $27,000 or $28,000. According to DonAlt’s analysis, this price point serves as a critical junction in terms of the upcoming ETF decision significantly affecting Bitcoin’s value trajectory.
ETF Scenarios for BTC
Furthermore, the analyst predicts that even the approval of a spot Bitcoin ETF in the U.S. may not lead to a complete rally for BTC. While conventional wisdom suggests that approval should drive prices up, the analyst posits that much of the positive sentiment may already be priced in. The analyst foresees that approval could lead to a short-term increase followed by a potential sell-off. This scenario could result in Bitcoin’s value slightly dropping before reaching above $40,000, possibly heading towards the $38,000 range.
Kelly compared current trends in the crypto market with those seen in healthy stock markets, where the performance of mid and small-cap stocks is very important. Pointing to the increasing popularity of altcoins like Polkadot, Cosmos (ATOM), and Solana (SOL), he noted the growing interest in cryptocurrencies beyond major players like Bitcoin and Ethereum. According to Kelly, this trend could indicate a broader and more resilient market growth, supported by real developments and applications built on these platforms.
