According to Matrixport, a crypto financial services firm, the Securities and Exchange Commission (SEC) in the United States will likely reject all Bitcoin ETF proposals in January.
This ominous forecast has caused Bitcoin’s price to fall, highlighting the market’s sensitivity to news and forecasts.
According to Matrixport, the first Bitcoin ETF approval may not occur until the second quarter of 2024. The firm’s unsettling prediction caused a significant drop in Bitcoin’s value, which recently fell to $42,500.
According to Matrixport, the SEC may find the existing spot Bitcoin ETF applications lacking, potentially resulting in a further drop to the $36,000 to $38,000 range if these applications are rejected.
The report emphasizes the importance of market narratives in determining Bitcoin’s price. Market trends have shown that positive expectations, such as the anticipation of ETF approvals, can cause Bitcoin’s value to skyrocket.
Bearish reports, such as Matrixport’s, on the other hand, have the potential to quickly reverse these gains.
The negative outlook from Matrixport had significant financial ramifications, wiping out over $1 billion in Bitcoin futures open interest. This demonstrates the significant impact of news and market reports on Bitcoin’s value and investor behavior.
