According to the veteran trader Peter Brandt, the current bitcoin exchange-traded funds (ETF) hype which has seen the “average guy on the street” clamoring to get in may be a signal to experienced traders that it is time to sell them what they own. Brandt also characterized the expected approval of spot bitcoin ETFs as a “classic buy the rumor, sell the news event.”
Brandt Questions Maximalists’ Commitment to the Values of Bitcoin
Veteran trader Peter Brandt believes the expected approval of spot Bitcoin exchange-traded funds (ETF) to be a “classic buy the rumor, sell the news event.” Brandt explained that this conclusion is based in part on how the so-called bitcoin maximalists are eagerly awaiting the approval of spot bitcoin ETFs and his years of experience as a pro trader.
In traditional stock trading, the phrase “buy the rumor, sell the news” refers to a trading strategy that involves buying a security based on speculation about an upcoming event and selling it when the event is announced. Some observers believe the U.S. Securities and Exchange Commission’s (SEC) much-anticipated approval of spot Bitcoin ETFs qualifies as such an event.
In a post on X, Brandt discusses two observations he has made. He points out the irony of BTC maximalists being unfazed by what would amount to the government’s influence or interference with crypto markets.
“BTC maximalists have viewed one of the predominant values of BTC is that it was outside the control of government — that it was not dominated by the same financial playground that has ruined so many things. So, how is it that so many BTCoiners view the SEC and ETFs as the savior of their financial future,” Brandt quipped.
Time for Experienced Traders to Get out
Regarding the ETF hype that has propelled BTC to its highest USD value in nearly two years, Brandt likens this current scenario to a guide commonly used by “old-time” career traders like himself. According to this guide, when the average person is itching to get in, that is usually a signal to old-timers that it is time to get out.
However, the veteran trader still acknowledges that his observations about bitcoin ETFs could be wrong. Brandt, who has clashed with BTC maximalists in the past, also asks those “smarter” than him to share their thoughts on the subject.
Responding to Brandt’s post on X, social media user Abel Chris said he disagreed with the veteran trader’s assertions. According to Chris, if the SEC approves 10 or more spot Bitcoin ETFs, the direction of the crypto asset’s price will be up. He added: “We may never see bitcoin at the current prices again. The next phase will be countries adopting bitcoin to back up their currency.”
Another user, Cristian Palusci implied that Brandt’s assertions about ETFs only apply to the “average European or American kid.” For bitcoiners from other parts of the world, the ETF approvals are a non-event.
“They are only interested in the fact that thanks to #bitcoin they have access to a parallel financial system, which protects their savings from the devaluation of local fiat currencies,” Palusci said.
Do you agree with Peter Brandt’s comments about BTC maximalists? Let us know what you think in the comments section below.