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NEW YORK – Crypto financial services firm Matrixport has released a report predicting that the U.S. Securities and Exchange Commission (SEC) is likely to reject all applications for Bitcoin spot exchange-traded funds (ETFs) by the end of January. This anticipated regulatory stance could trigger a drop in the price of bitcoin, which could go as low as $36,000.
Matrixport’s analysis indicates that the current Democratic leadership of the SEC, notably its Chairman Gary Gensler, is a factor in the cautious approach towards spot Bitcoin ETFs. The firm suggests that approvals may not be granted until the second quarter of 2024. The report highlights that approximately $10 billion in new crypto investments are dependent on a favorable decision regarding these ETFs. If the SEC rules against approval, the crypto market could see substantial sell-offs.
Despite the immediate bearish outlook, Matrixport remains positive about bitcoin’s prospects later in the year. The firm’s optimism is based on patterns seen during historic election years and bitcoin mining cycles, which it believes could serve as catalysts for a price rebound.
Currently, bitcoin is experiencing some volatility, with its value dropping from a high of $45,500 to $42,439 following recent market movements.
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