Bitcoin Price Vulnerable to 20% Crash, Slipping Below $36,000
Matrixport, a leading crypto firm, has made a bold prediction regarding the US Securities and Exchange Commission (SEC) and its stance on Bitcoin spot exchange-traded funds (ETFs). According to Matrixport, all applications for Bitcoin ETFs in January are expected to be rejected by the SEC due to crucial hurdles that have not been overcome by the applicants. This prediction has already had an impact on the Bitcoin market, with a significant amount of bitcoins being liquidated in just two hours. Traders are being advised to protect their long holdings by purchasing put options or even betting against Bitcoin with options.
Matrixport believes that there is a hidden requirement set by the SEC that applicants must fulfill before gaining approval for a Bitcoin spot ETF. While they anticipate this requirement to be met by the second quarter of 2024, they foresee a month of rejections in January. The exact nature of this requirement has not been disclosed, but it is likely to be related to regulatory compliance and investor protection.
If the SEC rejects all the applications, Matrixport predicts that the crypto market could experience significant price corrections, with a potential 20% drop in Bitcoin prices. They suggest that Bitcoin could fall back to the range of $36,000 to $38,000.
The predictions from Matrixport have already had an impact on the crypto market, with an 8% decrease in Bitcoin prices. This has led to dissatisfaction among investors as their portfolios have declined. The likelihood of ETF approval has diminished, resulting in weakness in crypto mining stocks and the sell-off of various crypto-related US stocks. If the SEC does reject all the proposals in January, as predicted, it could lead to further volatility and liquidations in the crypto market.
The sudden drop in the price of Bitcoin has caused a frenzy among investors and traders. Many prominent figures in the industry have reacted to this dip, with some attributing it to negative reports on ETFs. John Deaton, a well-known figure in the crypto space, humorously commented on the situation, suggesting that it was the “CRAMER CURSE” that caused the decline.
Considering the ongoing discussion surrounding spot Bitcoin ETFs and their impact on Bitcoin prices, traders are advised to carefully assess their exposure to Bitcoin and other cryptocurrencies. Seeking professional advice before making any investments is strongly recommended.