Crypto venture capitalist Andrew Kang sees the delayed Ethereum ETH/USD ETF causing market momentum to shift from upward to downward, particularly due to the lack of acute ETF inflows.
What Happened: Kang points out the effect for the different large cap cryptocurrencies.
Bitcoin
Despite the market’s shift, Kang remains optimistic about Bitcoin’s BTC/USD stability. "I think BTC holds strong and we don't see lower than $50,000," he asserts. The weekly chart might suggest a double top to some, but he believes the market structure has evolved significantly.
The presence of more dollar-cost-averaging (DCA) buyers and fewer leveraged players like 3AC, Alameda and Celsius create higher floors and equilibrium points for Bitcoin, enhancing its stability.
Ethereum
Kang predicts that ETH might hold up until the ETF approval but sees the upside capped at the low $4,000s for this year, whereas downside risks could take it to the low/mid $2,000s if ETF inflows disappoint or there's heavy selling of Ethereum. He also notes the expected ETF impact might not meet the high anticipations.
Solana
Kang comments on Solana's SOL/USD performance, acknowledging it as a "great horse" in this cycle but also highlighting its vulnerability to meme trading dynamics. He predicted that "If meme trading takes a pause for the next few months, you'll likely be able to buy SOL near $80 again." This indicates potential volatility and opportunities for strategic purchasing.
Also Read: Top Crypto Analyst Sees Ethereum, Altcoin Reversal Coming: ‘Back Up In The Next Few Weeks’
Why It Matters: Andrew Kang's analysis underscores that while delayed ETF approvals may temporarily dampen momentum, Bitcoin's strengthened market structure and Ethereum's potential ETF tailwinds provide a mixed but promising outlook.
Solana's susceptibility to meme trading trends presents both risks and buying opportunities. As summer progresses, investors should heed these dynamics and adjust their strategies accordingly.
Kang also pinned his mid-April tweet when he predicted Bitcoin to reach $80,000 by May, Solana at new highs and memes being beta. He also predicted $100,000 by the end of summer. That prediction came ahead of the Hong Kong ETF launch. This pin by the trader points out how the delay in approval has changed the outlook of crypto in two months since the tweet.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
