Matrixport Incident: Wu Jihan’s Series of Tweets Clarify the Misunderstanding – Matrixport Takes No Responsibility for the Steep Drop

Bitcoin fell from $45,320 to a low of $40,626, and Matrixport’s analysis report is considered one of the reasons for the decline. Matrixport co-founder Wu Jihan has responded to this event multiple times.

Matrixport Event Timeline

1/3|18:32: Matrixport tweets the release of the analysis report.
1/3|18:35: BTC begins to decline.
1/3|21:19: Bloomberg analyst: No signs of rejection.
1/3|21:23: Community criticism.
1/4|12:01: Wu Jihan responds: Analyst operates independently.
1/4|02:53: Wu Jihan: A report will not cause a crash.
1/4|06:14: Wu Jihan: Matrixport is not responsible for the market crash.

What were the bearish reasons given by Matrixport analysts?

Matrixport Event Timeline

Title: “Why SEC Will Reject Bitcoin Spot ETF Again.”

1/3|18:35: BTC begins to decline.
Bitcoin fell from $45,320 to a low of $40,626 at around 20:05, a decrease of about 9.93%.

1/3|21:19: Bloomberg analyst: No signs of rejection.
Bloomberg ETF analyst Eric Balchunas stated that people were tagging him like crazy on this “rejection” report. He said, “Other than approval, we haven’t seen any signs.” Eric Balchunas also asked if there were any sources for this statement or if it was just speculation.

1/3|21:23: Community criticism.
@BTC_Archive pointed out that Matrixport released two analysis reports on the same day with completely opposite predictions. However, the bullish report released by Matrixport was actually published on January 2nd and was falsely portrayed by @BTC_Archive as being released on the same day. The community mocked this, saying that both bullish and bearish predictions were made, so they can’t be wrong.

1/4|12:01: Wu Jihan responds: Analyst operates independently.
Wu Jihan posted in the evening, stating that although he believes the ETF is destined to be approved, he still supports analyst Markus Thielen and claims that the analysis report is intended for Matrixport users, and its widespread media coverage is beyond Matrixport’s plans and control.

Wu Jihan: A report will not cause a crash.
Wu Jihan posted again in the early morning, stating that Matrixport’s headquarters is located in Asia, with a flight time of over 17 hours from New York, so there can be no insider information. Instead of blaming the crash on the report, he suggested understanding the analyst’s perspective. He mentioned that Markus Thielen is just one of the collaborating analysts, and readers should take responsibility for their own trading choices.

Wu Jihan: Matrixport is not responsible for the market crash.
Wu Jihan emphasized that Markus Thielen did not release two opposite predictions on the same day, but rather had different views on two consecutive days. He views this ability to quickly adjust viewpoints as a skill and advantage. He also mentioned that whether the report is accurate or not, it can be reviewed later:

Short-term: Markus suggested users buy put options, and this suggestion has proven to be correct.
Medium-term: It can be observed by the end of January whether the SEC will reject the Bitcoin spot ETF.
Long-term: Smart investors will observe whether BTC will exceed the report’s predicted price of $42,000 by the end of the year, starting from 2024.

Wu Jihan concluded by sincerely wishing everyone prosperity and emphasized that Matrixport will not interfere with analysts in the future.

What were the bearish reasons given by Matrixport analysts?

According to previous reports, the bearish reasons include:

The SEC voting committee currently consists of five members dominated by Democrats.
Democrats do not like “cryptocurrencies.”
No applications have met a key requirement for SEC approval.
From a political perspective, there is no reason to approve a Bitcoin spot ETF and legitimize Bitcoin in another form.