The party is over ? While all eyes are on the approval of his Spot ETF, Bitcoin has just started a sudden decline at the beginning of the afternoon. A movement against the tide of recent weeks which calls into question the trend supposedly established since the end of 2023. With the possible cause, a group rejection of spot ETFs by the SEC of the United States. Explanation…
No spot Bitcoin ETF in January?
The price of BTC has just accused a sudden drop of -8.5% over the last few hours. A movement that has already been partly absorbed, but whose price remains stuck around the $42,400 at the time of writing this article.
A report from the Matrixport company behind the fall of BTC?
Probable cause of this sudden fall in the price of BTC: the publication of a Matrixport company reportwho comes to throw a stone into the pond of this approval of spot Bitcoin ETFsanticipated by many as almost obvious.
Matrix on Target predicts January rejection of Bitcoin Spot ETFs by SEC, warning traders to cover positions Long (buyers). Given Chairman Gensler’s skepticism towards cryptocurrencies, a potential BTC price decline of -20% is expected in the event of a rejection, although a positive outlook for the end of 2024 remains.
At the same time, Bloomberg ETF analyst Eric Balchunas says the situation ultimately remains unchanged. Because the estimated 90% chance of approval scheduled for January 10 still implies a 10% chance that this will not be the case.
The situation is very tense as a possible approval of spot Bitcoin ETFs. And while it’s never a good idea to panic, making arrangements to cover yourself in case of rejection seems like a good option in the current situation. A case to follow.