- Their most recent report indicates that all Bitcoin spot ETFs are expected to be rejected.
- After the news broke, the price of BTC witnessed a flash selloff.
Matrixport, a platform that specializes in financial services for the cryptocurrency industry, recently shocked the community with a wild prediction about the price of Bitcoin and the SEC’s position on the highly anticipated Bitcoin Spot ETF ruling.
Moreover, their most recent report indicates that all Bitcoin spot ETFs are expected to be rejected by the SEC in January, which may lead to a precipitous drop in Bitcoin’s value—possibly to $36,000.
All Eyes on SEC
The market has been rocked by this discovery, and Matrixport has warned investors to be cautious and think about buying put options or even shorting Bitcoin directly as a precaution.
Citing the SEC’s probable rejection of spot ETFs as a crucial issue, Matrixport’s analysis casts doubt on the positive predictions around Bitcoin’s future. Also, the crypto platform has recently voiced its doubts over the SEC’s openness to cryptocurrencies, contradicting its previous upbeat position.
The report also notes that the Democratic leadership of the SEC has a significant impact, especially given Chairman Gary Gensler’s cautious stance on cryptocurrency regulation. Furthermore, according to Matrixport, ETF approvals could not happen until Q2 2024, which would put a damper on expectations of an immediate market increase.
Furthermore, the company is arguing that if the SEC rejects the plans, the present flood of capital into cryptocurrency, motivated by hopes of ETF approval, would lead to massive liquidations.
Reverting to the zone of about $36,000-$38,000, the report predicts a quick 20% drop in Bitcoin price should the SEC reject the ETFs. After the news broke, the price of Bitcoin witnessed a flash selloff, dropping from above $45,000 level to $40,800 level. However, the price has recovered briefly and is now trading at $43,470 as per data from CoinMarketCap.
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