Bitcoin’s (BTC) price recently surged following fake news about a BTC ETF approval, according to one analyst this is an event with unexpectedly far-reaching consequences.
In his video on Oct. 18th, popular crypto YouTuber Crypto Banter provided an in-depth analysis of how this fake news impacted the crypto market and what lessons can be learned.
The fake tweet, which was posted and quickly deleted by crypto publication Cointelegraph, led to a spike in Bitcoin buying and liquidated many short positions. While the publication blamed the tweet on an intern posting unverified information, the host believes it was likely a coordinated effort at market manipulation.
However, the host argues the fake news may have actually benefited Bitcoin in some ways. First, it showed that a real SEC approval of a Bitcoin ETF is not yet priced into the market. When legitimate approval happens, likely within the next 85 days, Bitcoin could surge to $35,000-$40,000.
The incident prompted BlackRock CEO Larry Fink to go on TV and praise crypto’s potential role as a “flight to quality” asset amid global instability. Fink claiming there is “pent up demand” for crypto is a hugely bullish signal.
The brief surge also gave traders a “dress rehearsal” for the impact of real SEC approval. With a deadline of Jan. 10th, 2024 for approval, investors now have clear confirmation there are maximum 85 days left to accumulate Bitcoin before the ETF catalyst sends prices parabolic.
The host believes when ETF approval finally comes, it will “light the fuse” on Bitcoin acting as digital gold. Comparing the 1970s gold market pre and post ETF approval, he predicts Bitcoin could enter a prolonged bull run and reach prices of $100,000 and beyond.