U.S. SEC Will Reject Bitcoin ETF: Matrixport Predicts
Matrixport report predicts SEC Bitcoin ETF rejections, causing a drop in Bitcoin price and showing the market's sensitivity to news.
Matrixport, a cryptocurrency financial services firm, forecasts that the U.S. Securities and Exchange Commission (SEC) will reject all Bitcoin ETF proposals in January. They suggest the first approval might not come until Q2 2024, their scary forecast has caused Bitcoin's price to drop to $42,500 recently.
The firm's report led to a significant decrease in Bitcoin's value. They believe the SEC will find the current spot Bitcoin ETF applications insufficient, predicting a possible decline to $36,000 – $38,000 if the SEC denies these applications.
The report emphasizes how market narratives, like the anticipation of ETF approvals or rejections, heavily influence Bitcoin's price. Recent market trends saw a surge in Bitcoin's value due to positive expectations, but bearish reports like Matrixport’s can quickly reverse these gains.
The report's negative outlook resulted in substantial financial impacts, wiping out over $1 billion in Bitcoin futures open interest. This shows the significant influence of news and market reports on Bitcoin's value and investor behavior.
The cryptocurrency market, especially Bitcoin, remains highly sensitive to news and expert predictions, demonstrating how quickly investor sentiment can shift and impact the market.
