Analyst Warns of Potential Bitcoin Price Decline to $36K if Bitcoin ETF is Rejected by SEC

After experiencing increased volatility on Wednesday, Bitcoin (BTC) has returned to the same consolidation range that began in early December of last year. This false breakout has trapped many crypto traders and has sent shockwaves throughout the industry, emphasizing the importance of spot Bitcoin exchange-traded funds (ETFs) in the United States.

As the fourth Bitcoin halving approaches in less than 107 days, the debate surrounding the United States Securities and Exchange Commission’s (SEC) decision on January 10 has intensified on various social platforms. The uncertainty has led Matrixport to issue two reports, one suggesting that the US SEC will reject spot Bitcoin ETF applications, and the other suggesting imminent approval.

The approval of spot BTC ETFs in the United States is expected to have significant implications on the underlying price action, even though Bitcoin has become a mature trading instrument free from geopolitical interferences. Additionally, as the United States holds the position of the leading global economy with a national debt exceeding $33 trillion, the approval of Bitcoin ETFs could be crucial in controlling the escalating global debt crisis, as demonstrated by El Salvador.

If the SEC rejects the spot ETF applications, Bitcoin’s price could potentially decrease to $38,000 or $36,000. Over the past five weeks, Bitcoin has struggled to rally beyond $45,000 due to the uncertainty surrounding the spot BTC ETF decision. In the event of the US SEC rejecting the applications, short-term BTC holders may decide to take profits, joining miners in this action. Dinobet co-founder predicts that Bitcoin’s price could drop to the next psychological support range between $36,000 and $38,000.