It has been just revealed the fact that Bitcoin could soon follow Facebook’s 2012’s IPO. Below, you can find out exactly what this means.
Bitcoin could follow the footsteps of FB’s 2012 IPO
Macro strategist Jim Bianco believes that a spot-market Bitcoin (BTC) exchange-traded fund (ETF) approval might turn out to be a sell-the-news incident.
During a recent interview on Real Vision, Bianco reflects on Facebook’s initial public offering (IPO), one of the most highly anticipated IPOs in recent history.
The investor observed that after the initial trading at $28, shares of Facebook dropped all the way down to $11 despite being hyped by market participants. Bianco states that Bitcoin could face a similar situation when a spot ETF is approved.
“So I worry that if this is going to act like a TradFi market at all – in other words, be efficient like a TradFi market – that what’ll happen when the real approval comes, not just yet another bogus story, is you’ll have a couple of days rally and that’s it, and then the price will kind of meander sideways to lower for some period of time.”
He continued and stated the following:
“I tend to look at – if you want a quick example of that – I remember 2012 when Facebook came public, it was going to be the biggest IPO in human history, and it was coming public at $28…
[The question was] ‘What day does it hit $100?’ Not if it’s going to get to $100, but ‘what day is it going to get to $100?’It did, about three or four years later it went to $100. But first, it went to $11. First, you lost two-thirds of your money and then everything played out the way you thought it was going to. And that’s what I fear with the spot Bitcoin ETF, that some similar pattern might play out first before you get all of the upside that everybody thinks is going to come.”
At time of writing, BTC is priced at $37,002.
