The outlook for bitcoin and crypto stocks in 2024

CNBC’s Tanaya Macheel joins ‘Closing Bell Overtime’ to discuss Cathie Wood’s ARK Invest selling its GBTC holdings, the outlook for the crypto market in 2024, and more.

>>> WELCOME BACK TO OVERTIME. THE NEXT GENERATION INTERNET ETF SELLING ITS MORE THAN 2 MILLION SHARES COINED TRUST. BUT BY MORE THAN 4 MILLION SHARES OF THE STRATEGY ETF. HERE TO DISCUSS THE MOVE AND THE OUTLOOK FOR CRYPTO IS TANYA

MIKAEL. GREAT TO HAVE YOU ON THE SET. >> LET’S START WITH THE POSITION WE HAVE SEEN FROM WOOD AND WHAT WE ARE SEEING WITH SIMILAR TYPES OF POSITIONING OR AT LEAST ANTICIPATION OF A SPOT BITCOIN ETF FROM INVESTORS

AHEAD OF WHAT COULD BE AS SOON AS NEXT MONTH, AND APPROVAL. >> IT IS INTERESTING HEADING INTO THE TENT WHICH IS THE DEADLINE AT LEAST FOR THE ARK APPLICATION IN THE 21 SHARES. THAT NEEDS TO EITHER REJECT OR PROVE IT.

I SPOKE WITH KATHY WOOD A COUPLE OF DAYS AGO FROM CRYPTO WORLD ABOUT THIS. THAT WAS ACTUALLY THE REMAINDER OF THE CHAIRS AND SHARES IN THAT FUND AND SHE HAS BEEN OFFLOADING FOR SEVERAL WEEKS TO SHE TOLD ME AND WAS PRETTY

PLAIN ABOUT THIS, THAT IT IS PLAIN PORTFOLIO MANAGEMENT AND THE PRICE OF BITCOIN HAS BEEN RISING AND WE ALWAYS TAKE PROFIT. HOWEVER, AS YOU ALLUDED TO, IT IS INTERESTING. SHOULD SHE GET THE APPROVAL AND IT IS VERY LIKELY AND IF SHE

GETS APPROVAL, SEVERAL WILL GET APPROVAL. THAT WOULD MAKE A COMPETITOR. AND I WOULD EXPECT THAT SHOULD THE APPROVAL BEGOTTEN, THEN THE ARK ETF WOULD BE THE MAIN BITCOIN VEHICLE FOR OTHER FUNDS AS WELL. >> SO WANT TO WATCH THERE.

BITCOIN HAS HAD AN INCREDIBLE YEAR. 150% PLUS GAINS THIS YEAR. SOME CONTROVERSY HAS HAPPENED AND LEADERSHIP CHANGES HAVE HAPPENED. THERE IS AN EXPECTATION THAT IT COULD CONTINUE NEXT YEAR AS WELL. HOW MUCH OF THAT IS TIED TO ETF

APPROVAL? HOW MUCH OF THAT IS OTHER FACTORS AT PLAY, ASSUMING IT HAPPENS? >> THERE IS ENTIRELY THE POSSIBILITY THAT THERE COULD BE THE ETF REJECTION ALTHOUGH BROAD CONSENSUS IS THAT IT IS NOT LIKELY. THE BITCOIN ETF IS A BIG THING.

THINGS HAVE INTENSIFIED. YOU SAID BITCOIN UP 1.50 THIS YEAR. IT IS UP 57% OVER THE LAST SIX MONTHS WHICH IS THE LAST START WHEN THEY CAME OUT TO DO THE BITCOIN ETF AND THINGS HAVE BEEN BUILDING FROM THERE.

UP 11% JUST FOR THE MONTH. THE WHOLE SECOND HALF OF THE YEAR REALLY HAS BEEN ABOUT THE ETF STORY AND IT IS EXPECTED TO BE THE BIGGEST CATALYST NEXT YEAR AND THAT IS JUST THE START OF IT. A COUPLE OF MONTHS LATER, WE

WILL HAVE THE BITCOIN HAVING WHICH HISTORICALLY DRIVES BIG THINGS AND WE ARE ALSO WATCHING THE RATE ENVIRONMENT, EXPECTING TO MAYBE SEE CUTS NEXT YEAR. WE KNOW THAT RATE HIKES HAVE BEEN HURTFUL TO BITCOIN OVER THE LAST COUPLE YEARS.

SO THE SET UP IS REALLY STRONG. THERE ARE CONCERNS THOUGH. IT IS FEELING A LITTLE OVERHEATED. CRYPTO BITCOIN HAS THAT OUT TODAY SHOWING THE MARKET AS A LITTLE OVERHEATED. THEY THINK IT IS POSSIBLE THAT BITCOIN COULD CORRECT TO ABOUT

32,000, WHICH IS THE SHORT TERM HOLDER’S REALIZED AGAIN. THE PRICES HAVE BEEN CLIMBING AND CLIMBING. SO ALL OF THE INVESTORS, SHORT- TERM INVESTORS ARE SITTING ON THESE UNREALIZED PROFITS AND I THINK THOUGH ALSO, IT SHOULD BE POINTED OUT THAT EVEN IF THERE

IS A SHORT-TERM PULL BACK, MOST INVESTORS AGREE THAT IT DOES NOT REALLY TAKE AWAY FROM THE BULL CASE WHICH IS IF THERE IS AN ETF NEXT YEAR, IT WILL BE THESE INSTITUTIONAL INVESTORS THAT WERE CURIOUS AND HAVE BEEN SITTING ON THE FRONT LINES.

>> OF COURSE YOU ARE SEEING THE BITCOIN MINING STOCKS AND MOST OF THEM ARE VERY SMALL. THEY HAVE HAD HUGE GAINS IN ANTICIPATION OF ALL OF THIS THIS YEAR AS WELL. >> EVEN THE BIG ONES. IRIS ENERGY OF