Bitcoin (BTC) price to drop in the next 2 weeks: Matrixport

Matrixport issued a warning that it predicts a 7% decline for Bitcoin in the next two weeks, which is “one of the signs of the trade” that it has turned into depression for the first time since August 2023.

This cautious outlook by Matrixport follows an earlier statement by the company's analysts that they expect the US Securities and Exchange Commission (SEC) to ban all Bitcoin (BTC) exchange-traded funds (ETFs) in January.

Matrixport issues price reduction warning

In a blog post on January 8, the Singapore-based crypto management firm mentioned that it expects a possible fall in the price of Bitcoin, indicating that the ongoing breakout may not be sustainable.

Matrixport has expressed concerns about the market consensus that the SEC will approve the position of Bitcoin Exchange Traded Funds (ETFs) on January 10.

The paper suggests that smart money could use the expected approval for gains, although recent market activity has put it out of favor, with downside risk expected to be limited. However, the analysis suggests that the price range of $36,000 to $38,000 may be retested.

The report shows that the amount of Bitcoin funding on the crypto exchange decreased from 66.1% to 7.4% in January. He sees it as a sign that the largest cryptocurrency by market capitalization may be “technically vulnerable,” especially since the high funding seen earlier in 2024 is considered “unsustainable.”

SEC Spot Bitcoin ETF Decision Looms

Matrixport's latest warning comes shortly after another report, in which analysts expressed doubt that SEC Chairman Gary Gensler would approve bitcoin ETFs.

Matrixports Gensler's earlier comments suggest a need for stricter compliance in the crypto industry, indicating his reluctance to support a Bitcoin ETF, a space that could legitimize BTC as an alternative store of value.

The stance drew criticism from Alex Thorne, head of research at Galaxy Digital, who found Matrixport's report “disturbing” and “nonsensical”.

After the report, Bitcoin quickly fell to $41,500, according to CoinGecko data.

High-profile figures in the crypto community, including Will Clements, attributed the sell-off to Matrixsport, highlighting the market's sensitivity to rumors and news.

Jihan Wu, the co-founder of Matrixport, later said that the company will not be affected by the analyst reports, and the widespread response was unexpected.

Meanwhile, the broader crypto community eagerly awaits the approval of spot Bitcoin ETFs. The positive sentiment regarding the possibility of producing such a product in the United States contributed to the growth of the price of Bitcoin, the asset exceeded $ 45,000 in early January for the first time since April 2022.