January Bitcoin Market Forecast: Leading Trader Reveals Optimistic BTC Outlook Post-ETF Approval Possibility

A leading trader, known for successfully predicting the crypto rally earlier this year, is sharing his insights on Bitcoin's future, particularly as market watchers anticipate the possible approval of Bitcoin exchange-traded funds (ETFs) in the spot market.

Crypto analyst DonAlt, addressing his 55,600 YouTube followers, predicts that the approval of a spot-based Bitcoin (BTC) exchange-traded fund (ETF) will likely result in increased volatility for BTC. He suggests that upon the announcement of an ETF, BTC might experience a temporary surge, potentially reaching between $45,000 to $48,000, before undergoing a significant correction, possibly up to 10%, 20%, or 30% on a weekly basis.

DonAlt believes that even though a bullish trend could follow the ETF news, it's more likely to be a 'sell-the-news' event. He envisages a scenario where any initial gains are quickly reversed, followed by a recovery and subsequent rise in BTC's value. This pattern, he argues, represents the most optimistic outcome, though he deems it somewhat improbable due to the time it may take for the ETF's impact to fully materialize.

Despite anticipating a sharp correction post-ETF approval by the U.S. Securities and Exchange Commission (SEC), DonAlt thinks the entities backing the ETF could drive Bitcoin's next growth phase. He raises the possibility that companies like BlackRock, involved in the ETF, might invest heavily in Bitcoin to prevent it from losing value, thus ensuring the ETF doesn't appear unsuccessful.

In line with this, Bloomberg analyst James Seyffart speculated in November that the SEC might be preparing to approve multiple Bitcoin ETFs in January. At the time of the report, Bitcoin's trading price was $43,844.

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Dec 24, 2023