The rumours and speculations regarding the potential approval of a spot Bitcoin ETF create more twists. Shockingly, the ETF fever refuses to drop but intensified this week.
Subsequently, the tension in the crypto industry has taken to the north with a huge impact on crypto prices.
Bitcoin ETF Speculations Hit New High, Changing BTC Price
The predictions about the impending approval of the US Securities Exchange Commission (SEC) for BTC ETFs hit a new level this week. The X crypto community is currently bubbling with different opinions and positions about the situation.
A new blast on the matter came on Wednesday following the predictions of digital asset manager Matrixport. The firm released a report stating that the SEC will reject all applications of spot BTC ETFs on its desk.
It mentioned:
While we have seen frequent meetings between the ETF applicants and staff from the SEC, which resulted in the applicants refilling their applications, we believe all applications fall short of a critical requirement that must be met before the SEC approves.
MatrixPort, a firm that I’ve never heard of comes out and says that (in their view) the spot #Bitcoin ETFs won’t be approved by the SEC this month.
They are one firm. They might be right. They might be wrong.
This report is causing this selloff in #Bitcoin this morning. pic.twitter.com/K8UMifAsOY
— Caleb Franzen (@CalebFranzen) January 3, 2024
Following the post and subsequent responses within the crypto market, the price of Bitcoin reacted immediately. The primary crypto token saw a 7% decrease as it slipped below the $42,000 region, witnessing massive selloffs.
Similarly, an X user, @WClementIII, reported that more than $1 billion Bitcoin futures OI were liquidated in one candle.
Over $1 billion of Bitcoin futures OI wiped out in one candle
Thanks Matrixport pic.twitter.com/6WaiN96ZVK
— Will (@WClementeIII) January 3, 2024
Notably, related news and hype surrounding potential BTC ETFs impact the Bitcoin market price trend. This is because the finance product could integrate Bitcoin into the $14 trillion United States economy.
Moreover, the spot ETF product would open the door for traditional finance institutions and other individuals to invest in BTC without needing to hold the asset directly.
Experts Quickly Debunked Matriport’s Predictions
Some ETF professionals quickly deflated Matrixport’s post regarding the SEC’s coming decision on Bitcoin ETFs. They mentioned that the asset manager’s prediction was drawn from improper sources and faulty analysis.
Conversely, the experts expressed a high confidence that the SEC will approve a spot Bitcoin ETF this January.
Senior Bloomberg ETF analyst Eric Balchunas tried to probe for sources that supported the rejection notice. He reminded the writer that “we have heard nothing to indicate anything but approval” regarding the ETF applications.
At this point saying SEC rejecting it isn’t just going against @JSeyff and I like it was in the early days, now you basically saying multiple mainstream news reporters w multiple sources on inside of this also have it wrong too. Not saying it’s imposs (again we still ‘only’ at…
— Eric Balchunas (@EricBalchunas) January 3, 2024
Following several discredits of Matrixport’s report about SEC’s ETF approval, Bitcoin gradually reclaimed its lost value. Reacting to the reverse effect, a crypto analyst, Bluntz, noted Bitcoin’s recovery mode.
He posted that the token surged by over 8% in a day from the low triggered by Matriport’s report.
Also, another X user, EricOfRivia, acknowledged that Bitcoin has moved back to the $43,000 price level. He asked about the next step for the asset. He said, “OK, so what’s next? Approval is imminent. We need to get lower!”
“Sir, the Matrixport report brought #Bitcoin down by $5k temporarily. It is now back at $43k.”
“Ok so what’s next. Approval is imminent we need to get lower!”
“Next sir? We expected a much larger dip but the hodlers don’t scare easily. In fact they bought more” pic.twitter.com/kfnWvyLLU3
— EricOfRivia⚡️ (@EricOfRivia) January 3, 2024
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