With The Launch Of The Spot Bitcoin ETF Just Three Weeks Away, Will It Be A Boom Or A Bust?

The long-awaited spot Bitcoin BTC/USD ETF launch is just around the corner, throwing the cryptocurrency market into a fever pitch of anticipation and strategic planning.

According to digital asset trading firm QCP Capital, the moment of truth could arrive as early as the market closes on Jan. 5, 2024, or between Jan. 8 and 10.

Cash Only: The Final Hurdle Cleared

The final point of contention, the SEC's insistence on "cash only" versus "in-kind" delivery for the underlying Bitcoin in the ETFs, has finally been resolved.

With practically all ETF providers acquiescing to the SEC's demand, the path is clear for launch.

Potential "Sell The News" Scenario

However, QCP warns against overly optimistic expectations right out of the gate.

Its analysis suggests that initial demand for the spot Bitcoin ETF may fall short of bullish forecasts, setting up a potential "sell the news" scenario in the second week of January.

This could see Bitcoin encounter resistance in the $45,000 - 48,500 range, with a potential retracement to $36,000 before the uptrend resumes.

Long-term Bullish Outlook Remains Intact:

Despite the near-term volatility, QCP remains confident in the long-term upward trajectory of Bitcoin.

It predicts that the market will eventually regain its footing and position itself for a significant rally leading up to the next Bitcoin halving event.

Also Read: Messari Is Bullish On Bitcoin And Solana, But Cautious On Ethereum: What About AI?

Strategic Plays For Experienced Investors

For experienced investors already holding Bitcoin, QCP suggests employing tactical strategies to navigate the anticipated market movements.

Selling covered calls to capitalize on elevated forwards and volatilities is one option, while simultaneously purchasing out-of-the-money puts to profit from a potential post-ETF dip is another.

Ethereum Takes The Backseat For Now

As Bitcoin grabs the spotlight with the imminent ETF launch, Ethereum ETH/USD could temporarily fall behind its rival.

QCP anticipates the market's attention shifting towards a potential spot Ethereum ETF in the future, potentially leading to some investors switching out of Bitcoin and into Ethereum.

Additionally, it believes that strong support at the 0.051 level in the ETH/BTC pair might not hold in the coming weeks.

Future Of Ethereum Spot ETF Still Murky

While an Ethereum spot ETF is still months away, QCP expects existing Bitcoin spot ETF providers to waste no time in filing for their own Ethereum offerings.

This headline-driven momentum, warranted or not, could provide a temporary boost to Ethereum's price.

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