The Possibility of Bitcoin ETF Rejection? Cryptocurrency Market Faces Devastating Losses of Nearly 600 Million RMB
The US stock market had a poor start in 2024, failing to continue the strong momentum from the end of last year. Yesterday, all major indices closed in the red. As for Bitcoin, although it briefly rallied on the first trading day of the year, market confidence was weak. Yesterday, trading institution Matrixport released a report stating that the SEC will reject all Bitcoin spot ETF proposals in January. As a result, Bitcoin briefly dropped to $40,750, and other cryptocurrencies also experienced a decline. According to Coinglass data, positions worth $680 million were liquidated in the past 24 hours, leaving the bull camp in a dire state.
(Matrixport Analyst: ETFs Expected to Be Rejected in January, Bitcoin Falls to $36K~$38K)
The Federal Reserve, in its meeting minutes from December, revealed that interest rates may reach a high point with the possibility of rate cuts in 2024 due to recent decreases in inflation. However, participants acknowledged that the prospects for rate cuts were “unusually uncertain,” and the possibility of further rate hikes still existed. This demonstrates the uncertainty surrounding the timing of potential rate cuts.
The US stock market had a poor start in 2024, failing to continue the strong momentum from the end of last year. The Dow Jones fell nearly 300 points, the Nasdaq dropped 1.18%, marking the fourth consecutive trading day of decline, and the S&P 500 closed 0.8% lower. This is the first time since 2015 that these indices have declined in the first two days of the year.
Market participants will closely monitor the non-farm payroll report on Friday.
Yesterday, trading institution Matrixport released a report stating that the SEC will reject all Bitcoin spot ETF proposals in January. They expect Bitcoin to correct to $36K~$38K. In the tense market environment, BTC briefly dropped to $40,750 and ETH reached a price of $2,100. Other cryptocurrencies also experienced a decline. According to Coinglass data, positions worth $680 million were liquidated in the past 24 hours, resulting in a loss of $590 million for the bull camp.
Bloomberg ETF analyst Eric Balchunas, who has been highly regarded, clarified the situation: “We haven’t seen any signs other than approval.” He also responded to a tweet from Fox Business reporter Eleanor Terrett, who said, “The SEC is still meeting with several major exchange leaders today to discuss the submissions from these spot ETF issuers.” Balchunas believes that if the SEC intends to reject or delay, they wouldn’t be having these meetings. He also pointed out that the SEC has been in discussions with issuers to make the 19b-4 filings more complete, indicating that approval is imminent, unlike the constant resubmissions seen in issuer S-1 filings.
Note: 19b-4 refers to the filing submitted by exchanges, while S-1 is submitted by ETF issuers such as BlackRock.
Matrixport co-founder Wu Jihan also responded to the doubts, stating, “The analyst operates independently, and the approval of the ETF is inevitable.”
(BTC, Eric Balchunas, Matrixport, Bitcoin spot ETF)
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