Matrixport’s Bold Bitcoin Price Prediction and SEC’s Stance on Bitcoin Spot ETF
Matrixport, a crypto-focused financial services platform, has made a shocking forecast regarding Bitcoin’s price and the Securities and Exchange Commission’s (SEC) decision on Bitcoin Spot ETFs. According to their recent report, the SEC is expected to reject all Bitcoin spot ETFs in January, which could lead to a significant drop in Bitcoin’s value, potentially reaching $36,000.
This revelation has caused quite a stir in the market, prompting Matrixport to advise investors to take precautionary measures, such as buying put options or engaging in direct shorting of Bitcoin.
Matrixport Predicts SEC’s Rejection of Bitcoin Spot ETF
Matrixport’s report challenges the optimistic outlook on Bitcoin’s future by highlighting the SEC’s likely rejection of spot ETFs. The platform, which was previously bullish on Bitcoin, now expresses doubt about the SEC’s willingness to embrace cryptocurrencies.
The report emphasizes the influence of Democratic leadership within the SEC, particularly Chairman Gary Gensler’s cautious approach to crypto regulation. Matrixport also suggests that ETF approvals may be delayed until Q2 2024, dampening hopes of an immediate market boost.
The report reveals that a substantial amount of the recent influx of funds into crypto is tied to expectations of ETF approval. If the SEC denies these proposals, there could be significant liquidations, with around $10 billion out of $14 billion in additional investments being linked to optimistic ETF prospects. The report predicts a rapid 20% decline in Bitcoin price if the SEC rejects the ETFs, bringing it back to a range of $36,000-$38,000.
Advice for Traders
With the January 5, 2024 deadline approaching, Matrixport advises traders to hedge their long exposure by taking protective measures. This includes considering the purchase of put options with a $40,000 strike price expiring at the end of January or even opting for outright short positions through options.
Despite the potential setback from the SEC, Matrixport maintains a positive long-term outlook for Bitcoin. They expect prices to surpass $42,000 in 2024, the level at which it began the year. The analysis also highlights historical trends in US election years and Bitcoin mining cycles as potential catalysts for a rally.
As of writing, the Bitcoin price has decreased by 1.99% from yesterday and is trading at $44,467.42. In the last 24 hours, it reached a high of $45,503.24 and a low of $44,412.40.
Hot Take: Matrixport Warns of Potential SEC Rejection and Advises Protective Measures
Matrixport’s recent report has shaken the crypto community with its bold prediction of the SEC rejecting all Bitcoin spot ETFs in January. This anticipation has raised concerns about a significant decline in Bitcoin’s value, prompting Matrixport to advise traders to take precautionary steps.
The report highlights the influence of Democratic leadership within the SEC and suggests a potential delay in ETF approvals. It warns that if the SEC rejects the proposals, there could be substantial liquidations and a rapid decline in Bitcoin’s price.
To mitigate risks, Matrixport recommends protective measures such as purchasing put options or engaging in direct shorting of Bitcoin. Despite this potential setback, Matrixport maintains a positive long-term outlook for Bitcoin and expects prices to exceed $42,000 in 2024.
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