Bitcoin ETF Rejection Report Did Not Cause 8% BTC Price Fall – Analysis
Bitcoin (BTC) fell below $4,000 within hours as U.S. regulators panicked over their rejection of an exchange-traded fund (ETF).
This is the opinion of prominent analysts after BTC's price weakness led to a long liquidation of half a billion dollar crypto.
Report “no reason” claims to approve Bitcoin ETF
Coming at a significant time for Bitcoin, which celebrates its fifteenth birthday on January 3, the latest rapid BTC price decline has reduced the market by about 9%, data from Cointelegraph Markets Pro and TradingView confirms.
Statistical resource CoinGlass put the number of long liquidations of the day at $514 million.
The move was linked to a report by crypto financial services platform Matrixport that the US Securities and Exchange Commission (SEC) had certified that the ETF “does not accept” the position, amid long and open demand.
“The EFF will certainly allow crypto to take off overall, and based on Gensler's opinion in December 2023, it still sees this industry as needing stricter compliance,” he said.
“From a political perspective, there is no reason to approve a Bitcoin Spot ETF that legitimizes Bitcoin as an alternative store of value.”
Although the report was immediately available on the market, Matrixport failed to provide concrete evidence as to why the ETF's initial contract was guaranteed to fail.
The official window for SEC approval begins on January 4 and runs through January 10.
“Nothing goes straight up.”
Respondent, businessman, analyst and podcast host Scott Meeker sheds light on the rationale behind the company's vision.
Related: 15 Years, 90K ‘Bitcoinaires' — Bitcoin Millionaire Wallets Jump 300%
This is the “cause” of garbage disposal.
I put reason in quotes, because this is really just usage.
Regardless, this is an OPINION with zero new information that flies in the face of everything shared by experts.
Are you very talented? pic.twitter.com/inqMvPrb8r
— The Wolf Of All Streets (@scottmelker) January 3, 2024
Others pointed out that the fluidity seen on the day was nothing out of the ordinary and was not really part of normal Bitcoin bull market behavior.
Related: Spot Bitcoin ETF Could Be Rejected If SEC Wants ‘More Time' – Analyst
“I know people are desperate for a narrative, but Bitcoin didn't sell off because of some stupid report about an ETF denial,” crypto-focused litigator Joe Carlassare told subscribers on X (formerly Twitter).
“It's sold because nothing goes to the top and it's easy handling for liquid to make a long squeeze. In short, the market was overbought.
Matrixport, for its part, predicted only modest further declines if the decline materialized.
“If there is any reluctance by the SEC, we could see more liquidity as we expect most of the additional $5.1 billion in perpetual long Bitcoin futures to remain unaffected,” the report continued.
“We could see the price of Bitcoin falling rapidly by -20% and falling to the $36,000/$38,000 range.”
As Cointelegraph reports, downside targets put the mid-to-low-$30,000 range as a popular floor.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
