Jim Cramer: "Bitcoin can't be killed" ahead of ETF Launch
Bitcoin has seen a recent price surge, climbing over 6% to break above $45,000 just days before a potential SEC approval of a Bitcoin spot ETF. Many analysts predict the markets could see a sell-off after approval as investors "sell the news," but long-term bullish outlook remains. Institutions like BlackRock and JPMorgan are preparing for imminent approval, expecting significant inflows by end of January. This could bring mainstream validation and billions in new investments to the crypto markets.
However, risks still remain around potential denial or delays from the SEC. Key figures like SEC Commissioner Hester Peirce warn regulatory systems tend to move slower than expected. If no ETF is approved in coming weeks, Bitcoin could see a steep correction. Market participants have priced in approval hopes to a significant degree.
Macroeconomic trends will also play a key role. If strong jobs numbers persist, rate cut hopes could dwindle. That would pressure risky assets like crypto. But if growth slows and consumers pull back spending, it could give the Fed room to cut rates - a tailwind for Bitcoin. An impending recession still seems the most likely path.
In conclusion, expectations are high for a Bitcoin ETF approval. It could unlock a wave of institutional capital inflows. But markets may sell-off post-approval in the short run. And denial or delays could crush recent momentum. The macro backdrop will be equally important to watch, especially the Fed's rate policy. But long-term, crypto adoption seems poised to continue as more infrastructure falls into place.
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