What is the actual reason behind the decrease in today’s Bitcoin (BTC) price, excluding the Matrixport report?

Bitcoin’s 15th Anniversary Marred by 8% Crash Amid ETF Speculations
Bitcoin, on its 15th anniversary, experienced a substantial 8% crash, resulting in a nearly 9% downturn in the cryptocurrency market. This decline coincided with speculations surrounding the possible rejection of spot Bitcoin Exchange-Traded Funds (ETFs) by the United States Securities and Exchange Commission (SEC). However, expert analysts have dismissed the crash as unrelated to fears of ETF rejection.

Analysts State Market Turbulence Unrelated to ETF Fears
During this period of market turmoil, approximately half a billion dollars in crypto-long positions were liquidated. Nevertheless, leading crypto analysts, including Scott Melker and Joe Carlasare, have challenged the narrative that this sell-off was panic-induced due to a report from Matrixport. Instead, they believe it to be a typical market correction and an opportunity for a long squeeze. These analysts emphasize that markets do not move in straight lines.

Matrixport’s report, released on Bitcoin’s anniversary, speculated that the SEC would reject the spot ETF. It suggested that such a rejection could undermine Bitcoin’s credibility as an alternative store of value. However, the report faced criticism for lacking substantial evidence to support its claims.

The SEC has a decision window on the ETF matter from January 5 to January 10, creating anticipation within the cryptocurrency community. Despite the uncertainty, Matrixport’s analysis predicts only a modest decline in Bitcoin prices in the event of an ETF rejection. The report estimates a potential drop of about 20%, which could bring Bitcoin’s value to the $36,000 to $38,000 range.

As the market navigates through these fluctuations and speculative reports, it becomes crucial to differentiate between factual developments and mere conjecture. The upcoming days are expected to bring clarity as the SEC announces its decision on the spot Bitcoin ETFs.

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