Beyond the FOMO: Potential Pitfalls of the Upcoming Crypto ETF Approval

Everyone in crypto is excited about the upcoming ETF decision & many believe that the expected approvals will result in the start of a super cycle. It is easy to get caught up in the excitement & jump on the bandwagon. However, we need to take a step back and think independently.

X (Twitter) is an echo chamber.  It is easy to get caught up in it because everyone is saying that the ETF approvals are guaranteed and that BTC will explode to $100k. There’s a reason for this. The people saying this are invested and want their bags to go up.

They’re also likely to have already bought in at the lows (if they were smart / had a plan). Here are the reasons why I don’t believe that an ETF approval is the start of a super cycle.

1. Potential sell the news event – Even if the ETF gets approved, and retail sitting on the sidelines pour money in, there are tons of others who are leveraged up the ass hoping for a pop which means – profit taking galore.
2. History tends to repeat itself – In June 2022 everyone was hyped up about HK & SG coming into the market & how the ‘China coins’ would pump with massive green candles. It did not happen.
   1.  I am not saying this is exactly the same, but it’s better to temper emotions in investing.
3. It’s too easy – What’s the likelihood that these firms will start plowing money in from Day 1. This is too easy. Why would smart money make it easy for the retail investor. It’s likely that something happens, retail get shaken out and these firms get to buy cheaper.

I am not one for making predictions & prefer to stick with reality & what I see in front of me. What I do know is that the market has been on an up only trajectory over the last couple of months due to the anticipation of this ETF decision. BTC has increased by 75% since October.

ALT coins have also been exploding and riding on the coat tails of BTC as they usually do, but again…It just seems too easy. Maybe I am overthinking it but it’s better to consider all possibilities.

I obviously, like everyone else on X want the bull market to begin ASAP so I can make significant profit on my investments. I just don’t think this is THAT moment.