The crypto-focused financial services platform, Matrixport has shaken the crypto community with a bold forecast recently on Bitcoin price and SEC’s stance on Bitcoin Spot ETF decision. According to their recent report, the Securities and Exchange Commission (SEC) is anticipated to reject all Bitcoin spot ETFs in January, potentially triggering a sharp decline in Bitcoin’s value to as much as $36,000.
Meanwhile, this revelation has sent shockwaves through the market, prompting Matrixport to advise investors to consider protective measures, such as purchasing put options or even engaging in direct shorting of Bitcoin.
Matrixport Predicts SEC’s Potential Rejection Of Bitcoin Spot ETF
Matrixport’s report challenges the optimistic expectations surrounding Bitcoin’s future, citing the SEC’s likely rejection of spot ETFs as a pivotal factor. Despite the crypto platform’s earlier bullish stance, they now express skepticism about the SEC’s willingness to embrace cryptocurrencies.
Meanwhile, the report highlights the dominant influence of Democratic leadership within the SEC, particularly Chairman Gary Gensler’s cautious approach to crypto regulation. In addition, Matrixport suggests a potential delay in ETF approvals until Q2 2024, dampening hopes of an imminent market boost.
The firm contends that the current influx of funds into crypto, driven by expectations of ETF approval, could result in significant liquidations if the SEC denies the proposals. Besides, an estimated $10 billion of the $14 billion additional investments might be linked to optimistic ETF prospects, the report showed. Notably, the report foresees a rapid 20% decline in Bitcoin price, reverting to a range of around $36,000-$38,000, should the SEC reject the ETFs.
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Advise For Traders
With an ominous January 5, 2024 deadline looming, Matrixport urges traders to hedge their long exposure by considering protective measures. Notably, the recommendation includes purchasing $40,000 strike put options expiring at the end of January or even opting for outright short positions through options.
Despite the potential SEC setback, Matrixport maintains a positive long-term outlook for Bitcoin, expecting the BTC price to end 2024 above the $42,000 mark, at which it started the year. The analysis also highlights the historical trends in US election years and Bitcoin mining cycles for the potential rally.
Meanwhile, as of writing, the Bitcoin price was down 1.99% from yesterday and traded at $44,467.42. Over the last 24 hours, it has touched a high of $45,503.24 and a low of $44,412.40.
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