Benzinga – King of cryptocurrency Bitcoin (CRYPTO: BTC) has had a stunning bull run in 2023. Anticipating approval for Bitcoin ETF, the cryptocurrency’s market capitalization has surged 164% in 2023 so far, which is an increase of $539 billion.

Now, a leading cryptocurrency trader thinks there is a possibility of a considerable drop in Bitcoin value.

What Happened: Renowned cryptocurrency expert DonAlt asserts that the sanctioning of a spot-based Bitcoin ETF could result in heightened Bitcoin price fluctuations.

DonAlt anticipates that Bitcoin might briefly rally following the ETF news, but a significant correction would ensue.

“I think the news is going to be a sell-the-news event. You might just wick, like maybe we wick to the upside on the ETF announcement toward $45,000, $46,000, $47,000 maybe $48,000 something like that,” he said.

“Then I could see a 10%, 20% or 30% weekly wick to the downside,” he added, saying that the Bitcoin ETF approval could actually be a “sell-the-news” event.

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Despite predicting a sharp dip after the ETF approval, DonAlt maintains that the entities backing the ETFs could drive Bitcoin’s subsequent ascent.

He argued that major firms such as BlackRock Inc. (NYSE:BLK) wouldn’t let the cryptocurrency fade post-ETF announcement and might acquire Bitcoin in bulk to prevent it from becoming a “complete joke.”

Why It Matters: The potential approval of Bitcoin ETFs has been a hot topic in the crypto community recently.

The remarkable 160% surge in Bitcoin’s market capitalization in 2023 was fuelled by investor optimism around this possibility. The decision, expected by Jan. 10, might trigger a “demand shock” in the market, according to MicroStrategy co-founder Michael Saylor.

The long-awaited launch of the spot Bitcoin ETF is nearing, stirring significant anticipation and strategic planning in the cryptocurrency market.

Considering these factors, the predicted correction post-ETF approval could be a pivotal event in the cryptocurrency market, potentially impacting Bitcoin’s future trajectory.

Price Action: At the time of writing, BTC was trading at $43,616.73, up 0.05% in the last 24 hours, according to Benzinga Pro.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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