- Analyst Scott Melker said there is presently a risk of a Bitcoin pump-and-dump.
- A spot Bitcoin-ETF rejection by the SEC could cause a flash crash in the digital asset’s price.
- ETF-fueled optimism sent Bitcoin prices past the $47K level yesterday after issuers announced their fees.
Fears of a Bitcoin crash have heightened should the US Securities and Exchange Commission (SEC) decide not to approve the spot Bitcoin Exchange-Traded Fund (ETF) proposal by the end of the week.
Noting these concerns, renowned cryptocurrency analyst Scott Melker mentioned in a video that there is a Bitcoin pump-and-dump risk. According to the analyst, this risk comes as investors await the Wall Street regulator’s stance on a green light for the pioneer cryptocurrency asset.
On Monday, Bitcoin ETF-fueled optimism drove the asset’s price to a new annual peak of $47k. The sudden surge came after institutions in the ETF race unveiled their fees, prompting speculations that an SEC approval was just around the corner.
Commentary from experts in the video suggests the SEC is still reluctant to give a go-ahead, citing risks associated with an ETF launch. However, crypto founder Dave Weisberger opined that months of lawsuits from issuers against the SEC is what could follow the BTC ETF rejection.
Meanwhile, crypto analyst James Lavish pointed out that Bitcoin has decoupled from the rest of the market. At the moment, the analyst said the digital asset is event-driven and would be quite volatile in the very short term.
In the longer term, Lavish said the largest cryptocurrency by market size would see a significant increase in value. The analyst based this expectation on the amount of liquidity expected to go into Bitcoin following an ETF approval. Experts and analysts predict Bitcoin could hit a new all-time high by the end of the year.
At the time of press, Bitcoin is exchanging hands at $46,831 after a 6.74% increase in the last 24 hours. The current price is a marginal decline from the $47K level it reached in the past day, data from CoinMarketCap reveals.
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