The cryptocurrency market faced an upheaval today, with Bitcoin recording a significant drop of nearly 9% following an eye-opening report from Matrixport.
Bitcoin price failed to remain in a positive zone above $45.000. BTC began a new decline and traded close to $40.100. It is currently trading at $42.600, down 7% on the day on a bearish angle.
Likewise, most major altcoins trade in the red zone. ETH traded below the $2.100 and $2.250 support levels. XRP fell below $0,60 and tested the $0,50 support. ADA is approaching the $0,55 support. Solana is trading near $99 with 11.8% down in the last 24 hours.
Matrixport Report Announces Possible SEC Rejections
Markus Thielen, analyst, surprised many when forecast that the United States Securities and Exchange Commission (SEC) will reject all Bitcoin spot ETF proposals in January, contrary to general market consensus.
Thielen, basing his predictions on political analysis and compliance concerns, pointed out that despite intense discussions and updates to S-1 prospectuses between filers and the SEC, the requests do not yet meet a critical requirement for approval. This view is echoed by SEC Chairman Gary Gensler, who has expressed caution regarding the adoption of cryptography in the US, demanding stricter compliance in the industry.
Gensler expressed his concerns in an interview with CNBC, where he highlighted challenges facing the industry, including fraud and bad actors. His emphasis is on the need to comply with securities laws and anti-money laundering regulations to protect the public.
This panorama has generated negative expectations in the market, especially among major asset managers such as BlackRock, Fidelity and VanEck, which are among the 14 that are anxiously awaiting the approval of a spot Bitcoin ETF by the SEC. Denial of these requests could trigger cascading liquidations, potentially leading to a drastic drop in the Bitcoin price – possibly around 20%, returning to values between US$36.000 and US$38.000, as predicted by Thielen.
