- Matrixport predicts SEC will deny Bitcoin spot ETFs, potentially dropping Bitcoin to $36,000.
- Matrixport advises investors to buy put options or short Bitcoin for protection.
- SEC’s Democratic majority and Gensler’s cautious stance may delay ETFs until 2024.
Matrixport, a service provider focused on financial offerings for the cryptocurrency sector, surprised the industry with an unexpected forecast regarding Bitcoin’s value and the SEC’s stance on the much-awaited ruling for the Bitcoin Spot ETF.
Additionally, the latest report suggests that the SEC is anticipated to deny all Bitcoin spot ETFs in January, potentially causing a sharp decline in the value of Bitcoin
The SEC: A Focus of Attention
This discovery has shaken the market, and Matrixport has advised investors to exercise caution and consider purchasing put options or directly shorting Bitcoin as a safeguard.
Matrixport’s analysis points to the SEC’s likely disapproval of spot ETFs as a significant concern, questioning the optimistic forecasts for Bitcoin’s outlook. Furthermore, the cryptocurrency platform has expressed skepticism about the SEC’s receptivity to digital currencies, which departs from its formerly optimistic stance.
The document additionally points out that the influence of the Democratic majority at the SEC is noteworthy, particularly due to Chairman Gary Gensler’s prudent approach to overseeing cryptocurrencies. Moreover, Matrixport suggests that the authorization of ETFs might be delayed until the second quarter of 2024, potentially tempering anticipations for a swift surge in the market.
Additionally, the company contends that should the SEC disapprove of the proposals, the current influx of investment into cryptocurrency, driven by expectations of ETF sanction, would result in widespread sell-offs.
The forecast indicates that if the SEC disapproves of the ETFs, Bitcoin’s value could plummet by 20%, returning between $36,000 and $38,000. Following the announcement, Bitcoin’s value experienced a rapid decline, falling from over $45,000 to $40,800. Nonetheless, there has been a slight rebound in its price, currently at $43,470, according to the latest figures from CoinMarketCap.
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