A crypto specialist, known by the pseudonym The Flow Horse, has recently voiced concerns about the imminent future of Bitcoin BTC/USD.
What Happened: The analyst anticipates a downward trend for Bitcoin in the upcoming period. In a post on X, The Flow Horse posits that the initial excitement over the anticipated approval of a spot Bitcoin exchange-traded fund (ETF) might temporarily boost Bitcoin's price.
However, this analyst predicts a rapid decline following this rise and says that larger washouts are probably coming.
The Flow Horse warns that this speculative nature could lead to significant market fluctuations, especially after the ETF decision.
The verdict from the U.S. Securities and Exchange Commission on the spot Bitcoin ETF applications is expected by Jan. 10, 2024.
Also Read: Bitcoin Primed To Explode By Over 400%, Says Crypto Analyst
The Flow Horse outlines two potential outcomes regarding Bitcoin's price trajectory around the ETF announcement. One possibility is a decrease in Bitcoin's value before the announcement, followed by a more pronounced decline. Alternatively, the price might stabilize until the announcement, then briefly rise before falling.
Regardless of the scenario, the analyst anticipates a Bitcoin price downturn following the potential approval of an ETF.
At the time of writing, Bitcoin was trading at $42.193, down 3.6% in the last seven days.
This impending ETF decision is keenly awaited by the market, as it could significantly influence Bitcoin's direction in early 2024.
Now Read: Bitcoin On The Cusp Of 'Final Correction,' Says Crypto Analyst
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