The co-founder of crypto lender Nexo believes that the approval of a Bitcoin ETF by the American authorities is not guaranteed. Just as there is no certainty that the emergence of these exchange-traded funds will lead to an increase in the value of BTC.
Antoni Trenchev is confident that, for the most part, the rise in prices of the first cryptocurrency is due to the fact that investors are awaiting the likely approval of a Bitcoin ETF by the US Securities and Exchange Commission (SEC). According to the businessman, against this background speculation begins, which develops according to the classic scheme “Buy rumors, sell news.”
Trenchev believes that investors will hastily close their speculative positions immediately after the approval of the Bitcoin ETF. This has already been observed after the approval of the first ETF for Bitcoin futures in 2021 and resulted in a rapid decline in the value of the asset by 87%: the co-founder of Nexo noted.
The market expert recalled the tendency of Bitcoin to reverse after overcoming significant price levels. For example, in 2021, Bitcoin fell below $30,000 just two weeks after breaking the $40,000 barrier.
On the night of December 6, 2023, the BTC rate exceeded $44,000 – this is the highest level since the beginning of April 2022. Bitcoin grew by more than 15% in a week.
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