Gareth Soloway, an analyst and Chief Market Strategist at InTheMoneyStocks.com and President of VerifiedInvesting.com, has recently dived deep into the dynamics and offers a glimpse into Bitcoin and its future.
Bitcoin’s rally, which boasts a 30% uptick in the past fortnight, has reignited the bullish sentiments within the crypto community. This performance has been linked to the anticipation surrounding the potential approval of a spot Bitcoin Exchange-traded fund (ETF). What happens once this approval is granted?
The Power Of Speculation And Potential Spot Bitcoin ETF Impact
Gareth Soloway believes the approval, which might see daylight by the end of this year or early 2024, could trigger a price correction. “If Bitcoin is still up here, you may not go higher,” Soloway posits.
Soloway argues that the crypto space might already be factoring in the spot Bitcoin ETF approval. This implies that the news, once official, might paradoxically catalyze a sell-off, dampening the current momentum.
Soloway’s projection sees the “maximum upside” of Bitcoin in this bull phase reaching around $47,000 – potentially the next resistance level.
The expert hints that many institutional ETF players might have pre-emptively accumulated Bitcoin, anticipating an eventual spot ETF approval. This could mean fewer buyers once the spot Bitcoin ETF comes to life. Soloway elucidated:
Many of these ETF institutions have probably been accumulating for the last couple of months, knowing that eventually an approval will come. And so, there may not be as many buyers for the spot ETF.
A Glimpse Into 2024: Economic Predictions And Crypto
While Bitcoin’s immediate future is in the limelight, Soloway takes a broader macroeconomic stance for the coming year. The analyst paints a cautious picture, predicting an impending economic recession in 2024. This, coupled with a stock market correction of around 35%, might significantly impact Bitcoin.
Soloway noted predicting a possible plunge to $15,000:
What happens if the stock market goes down 35%? Fear and panic will take over, even in Bitcoin holders. Remember, there are a lot of people who hold Bitcoin that also have big stock portfolios. And if I’m down huge at some point, do I start to panic and start selling everything? That’s the worry that could drive us back to $15,000 or even lower.
Backing his bleak economic prediction, Soloway further highlights soaring credit card debts, skyrocketing interest rates, and the “risky” state of several banking institutions.
The expert stressed the lurking dangers within the banking sector, many of which he called “zombie banks,” operating with unsustainable “dead paper on their balance sheet.”
Despite the grim financial outlook, Soloway shared his bullish sentiment on gold, anticipating new all-time highs. The analyst underscores the importance of aligning with “smarter money,” referring to central banks that oversee and implement monetary policies.
Soloway concluded:
If they [Central Banks are] loading the boat on gold, then it probably says we need to do the same
Featured image from iStock, Chart from TradingView