Cathie Wood expects Bitcoin crash upon ETF approval
Last Updated on 1 January 2024 by CryptoTips.eu
Many market analysts are already looking forward to Wednesday 10 January 2024. That is the earliest possible date for a Bitcoin ETF (exchange traded fund) to be approved by the SEC.
As Americans invest a large portion of their savings in stocks, this could trigger a major influx for crypto investments.
However, noted stock picker Cathie Wood thinks the opposite will happen, at least in the short term.
Sell the news
Cathie was interviewed about the stock positions of her ARK Invest fund for 2024, as she has consistently finished quite high in the Wall Street rankings in the last few years. She usually chooses technology stocks and crypto-related stocks. Asked about the upcoming Bitcoin ETF, Cathie said she expects a “sell the news” moment upon approval, in other words a sudden and significant drop of the Bitcoin price.
‘Buy the rumor, sell the news‘ is a classic saying from the world of finance. It means that you should buy a stock or asset the moment you hear a rumor and then sell it again when that rumor becomes fact. In the case of Bitcoin, that means you had to buy during the summer and sell after the ETF is approved (probably early 2024).
Cathie immediately adds that she expects Bitcoin to only take a short break and then rise nicely again.
The last time she was questioned by investors and we reported on it was mid-November. Back then Cathie said she expected Solana to do very well in the coming weeks, which indeed happened. So beware.
