Matrixport
Matrixport provides a range of cryptocurrency-related services like trading, custody, lending, and structured products. Formed by Jihan Wu and John Ge, co-founders of Bitmain, the company’s key focus is making digital asset management and financial services accessible in a secure and compliant environment.
Bitcoin Value Fluctuation
On January 3, Bitcoin’s value dropped 9% from $45,510 to $41,454 shortly after Matrixport released a report warning investors of potential SEC action against Bitcoin Spot ETFs.
Impact of SEC on Bitcoin
Matrixport’s report indicates that the SEC, under a democratically-led team, may not favor the approval of a Bitcoin Spot ETF, which potentially hinders the cryptocurrency sector’s growth.
Matrixport’s Response
Jihan Wu, Matrixport co-founder, clarified that the company’s analysts operate independently and emphasized the need for clients to be cautious of risks and leverage, given Bitcoin’s volatile nature.
Bitcoin’s Future Outlook
Despite the recent turmoil, Wu believes Bitcoin will thrive in the long run, especially if the SEC approves a spot Bitcoin ETF, further solidifying its position as a store of value and a hedge against risk.
Huge Drop in Bitcoin’s Price
Following the Bitcoin value decline, some market analysts deny the blame on Matrixport, suggesting that the record-high Bitcoin perpetual funding rate was the main factor driving Bitcoin’s price drop.
Perpetual Futures Market Dynamics
Matrixport referred to the periodic fee paid from one side of the market to the other as the reason for the market turmoil, while critics highlighted the nonsensical claims in Matrixport’s analysis.
Hot Take
Matrixport’s report warning of SEC action against Bitcoin Spot ETFs is blamed for Bitcoin’s rapid decline. However, some argue it may not be the sole factor, given the volatility and leveraged nature of the crypto market.
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