Aylo: Bitcoin to Experience Significant Drop in Q1 if "ETF Approval" Does Not Happen

With 80,000 followers on Twitter, KOL Aylo shared his views on various crypto areas for 2024 today, 1/3. Here is the summarized part about Bitcoin:

Aylo believes that 2024 will be a bullish year for the entire crypto market.

We have macro bullish factors such as increased liquidity, decreasing interest rates + election years are usually strong for the market, BTC halving, approval imminent for Bitcoin spot ETF, and Ethereum spot ETF likely to follow.

Although I do see evidence of retail investors returning to the market, most people still do not realize that cryptocurrencies are not over. Everything will gradually unfold, possibly when Bitcoin breaks its all-time high, and then the explosion will happen at once.

Key Points: The market has long indicated who the cyclical winners are

Aylo suggests that in order to avoid being stuck with slower coins, the leading ones tend to lead the bull market. To a large extent, the market has already shown you who the cyclical winners are, you just need to pay attention.

Bitcoin

Bitcoin Hits New High This Year, Expecting in Q3/Q4

Aylo believes that Bitcoin will hit a new all-time high again this year, but preferably in the third/fourth quarter, as if it happens earlier, this cycle's bull run may reach its peak sooner.

ETF Impact on Liquidity

Aylo believes that the approval of a Bitcoin spot ETF will indeed have a significant impact on this asset class. He emphasizes the impact of pension fund inflows into Bitcoin, stating, "It is now the time for financial advisors to suggest allocating 1-2% of their portfolios to this spot product to clients. If BTC rises 100-200% in the coming years, any financial advisor who does not make this suggestion will be in trouble."

Traditional finance professionals: Bitcoin spot ETF approval will be adopted by a large number of 401k retirement plans

Cyclical Markets Are Not Always the Same

Aylo points out that in terms of past Bitcoin bull market cycles, the bullish sentiment in 2023 is much higher than in 2019. This caught many people off guard. However, the results show that cycles do not always perform the same way.

Bitcoin Ecosystem Becomes a Catalyst Unlike Before

Aylo believes that through Bitcoin's network via ordinals, L2, and BRC-20, it increases actual network activity, often charging more fees than any other blockchain.

This is expected to gain momentum by 2024, as people buy BTC to participate in these new forms of speculation. These things were not present in the previous Bitcoin cycle, so this is a significant change and adds additional bids for BTC.

Is it the Right Time to "Sell the News"?

Many in the market are worried that the approval of a Bitcoin spot ETF will lead to a sell-off. Aylo offers a slightly different perspective, stating that the real "Sell the News" moment should be when the ETF is actually launched, not when approved.

This could be a significant dip to buy before further upward movement.

After a series of sell-offs in Q1 2024, a major drop is inevitable.