The SEC and Bitcoin ETF Predictions
Matrixport predicts that the US Securities and Exchange Commission will reject all January applications for Bitcoin spot exchange-traded funds (ETFs). Despite intense negotiations, the proposals are not expected to meet the necessary requirements for approval. This prediction is likely to impact the price of Bitcoin.
Immediate Bitcoin Impact
The prediction has already affected Bitcoin, with 400 million bitcoins being liquidated in two hours. Traders are advised to protect their long holdings by purchasing put options or taking the risk of betting against Bitcoin with options.
The Hidden Key and Market Corrections
Matrixport suggests that the critical requirement the SEC demands remains undisclosed, but it could result in significant price corrections if the applications are rejected. They estimate a potential 20% drop in Bitcoin prices, falling back to the $36,000 to $38,000 range.
Impact On the Crypto Market
The predictions have already impacted the crypto market, with Bitcoin prices dropping by 8%. The likelihood of ETF approval became less likely, leading to weakness in crypto mining stocks and the sell-off of several crypto-related US stocks.
Reaction from the Crypto Industry
Investors and traders have reacted strongly to the sudden price drop of Bitcoin. Many are pointing to negative reports on ETFs as the cause of the decline, with some blaming the “CRAMER CURSE” for the dip.
Hot Take
When it comes to cryptocurrencies like Bitcoin, it’s important for traders to carefully consider their exposure and seek professional advice before investing, especially in the face of potential market volatility and sudden price fluctuations.
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