Matrixport Report Confuses The Community About The Bullish View Of Bitcoin

Key Points:

• Matrixport report anticipates U.S. SEC rejection of Bitcoin ETFs by January end, citing persistent issues.
• A potential downturn in Bitcoin prices to $36,000 is forecasted by Matrixport, contingent on the SEC’s rejection, with significant market sell-offs possible.

In a recent report, crypto financial services company Matrixport forecasts that the U.S. Securities and Exchange Commission (SEC) is poised to reject all spot exchange-traded fund (ETF) applications for Bitcoin by the end of January.

Matrixport Report Predicts SEC Rejection of Bitcoin ETFs

Analyst Markus Thielen highlighted persistent shortcomings in recent filings, emphasizing a critical requirement yet to be met for SEC approval.

The Matrixport report attributes the cautious stance to the SEC‘s Democratic leadership, including Chairman Gary Gensler, who speculates that approval might not materialize until the second quarter of 2024. The report underscores that approximately $10 billion in new crypto investments hinges on a positive decision regarding these ETFs, warning of potential significant sell-offs in the cryptocurrency market if rejected.

Contrary to a previous prediction of Bitcoin surging to $50,000 by January, the Matrixport report now suggests a downturn, with prices possibly dropping to $36,000 in response to the expected SEC rejection. Despite this immediate bearish outlook, the company remains optimistic about Bitcoin’s prospects later in the year. It cites historical patterns during election years and the Bitcoin mining cycle as potential catalysts for a price recovery.

Bloomberg ETF Analyst Eric Balchunas has contested the Matrixport report, expressing skepticism and indicating no information to suggest anything but approval. He questions the sources behind Matrixport’s reversal, especially considering their recent bullish stance.

As of now, Bitcoin experiences volatility, slipping from a recent high of $45,500 to $43,400 amid market fluctuations. The crypto community awaits the SEC’s decision, with potential repercussions on Bitcoin’s value and broader market trends.