Bitcoin, The BlackRock ETF & The Next Six Months
Patiently Waiting
As far back as 2017, we began to hear rumblings of a spot Bitcoin ETF and the enormous effect it would have on the Crypto market as a whole. For those who are unfamiliar with an ETF, it stands for exchange-traded fund and has the potential to dramatically increase Bitcoin’s potential investor base. An ETF would make Bitcoin available to pretty much every investment portfolio on the planet. Even if many investors choose only to gain minimal exposure to the asset, collectively, it has a tremendous impact.
Over the years, we have witnessed numerous spot Bitcoin ETFs being rejected. As I suggested a while ago, I believe this to be by design. Essentially, I believe that the SEC has been secretly waiting for BlackRock to enter the space and present an application for a Bitcoin ETF. Many are likely to disagree due to BlackRock’s recent application being rejected. However, it was not an outright rejection but rather a request for “readjustment”.
Those who are choosing to ignore the psychological, political, and business dynamics at work in this response are likely to choose a rather naive interpretation of the recent “rejection”. The SEC has come under a lot of scrutiny of late, and rightfully so. How do you think it will look if ETFs have been rejected for years, and then BlackRock files an application, and it is immediately approved?
The SEC has to tread lightly here. Eventually, the BlackRock ETF will get approved. That is at least my interpretation. Furthermore, there is the dynamic that I presented in a fairly recent article entitled “The Accumulation Zone – Where Warfare Takes Place”. Essentially, the next six will be prone to interference or, if you like, manipulation. This is to provide one last period of extended accumulation.
My expectations are a market that ranges between $25K and $40K. Some might consider that a rather large and extended range. However, we are talking about six months here, not a couple of weeks. That being said, an on-off scenario between BlackRock and the SEC might just be the perfect “tool” to ensure one last significant opportunity prior to the bulls coming to town, which I only expect to see next year.
Some might consider $40K bullish. However, it’s simply a “shift in the right direction”. Strictly speaking, it is part of Chapter 1 of the bull market. It’s simply a significant confirmation of a readjustment… solidifying a trend reversal, which has already been printed, but not solidified. I expect that there will be a bit of back and forth between BlackRock and the SEC to secure and ensure the maximization of this phase.
Dips Are For Buying
If I am correct, then dips are for buying. That is how I view it. Essentially, this phase reminds me of late 2019. A season that later proved to be one of the best places to begin an extended period of accumulation. Not every investor has dry powder on the side, which is simply waiting for a perfect opportunity. Capitalizing on the covid crash would have been first prize. However, many are investing income as it is being earned, which is why a six-month period works well to execute this approach.
An investor who is investing via a salary or even weekly income is limited in terms of maximizing an opportunity similar to a covid-like crash. This is also why I refer to it as the “safe accumulation” period. Dumps are likely to be bought up quickly, as well as the market being in a state of reversal. The odds are in your favor to be dollar-cost averaging during this period. Yes, nothing in life is a sure thing. However, the best we can do is to side with confluence.
Final Thoughts
There might well be other spot Bitcoin ETFs finding approval in the not-too-distant future. However, I believe that BlackRock will ultimately surface as the dominant player. I guess we are likely to find out relatively soon. There are also rumors flying around that Gary Gensler is resigning and is due to an internal investigation. To my knowledge, this has not been confirmed as of yet. This, too, could propel the market in the short term, provided it is true.
It’s an interesting time for Crypto. So many expected outcomes and events are coming to a head… and are likely to unfold in close succession of each other, ultimately creating a compounded and intensified catalyst. This could very well be a rather impressive bull market… and it’s not that far off now! All the best, keep stacking sats… and catch you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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