Is Matrixport’s report really the main reason for Bitcoin’s price collapse?

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Bitcoin remains stuck in the $40,000 area amid fears of US regulators rejecting ETFs.

This is the view of a prominent commentator after the price of Bitcoin plummeted, leading to the liquidation of long positions worth $500 million.

Bitcoin ETF rejects report

Data from TradingView confirmed that the drop occurred on the occasion of Bitcoin’s 15th birthday celebrations on January 3, causing the market to drop nearly 9%.

BTC/USD Chart – 1 Hour | Source: TradingView

CoinGlass, the source of statistics, said that the total number of long position liquidations that day was $514 million.

Cryptocurrency Liquidation Chart | Source: CoinGlass

While this move eliminated long positions and open interest, it also brought Report News from cryptocurrency financial services platform Matrixport revealed that the U.S. Securities and Exchange Commission (SEC) “will reject” spot ETFs.

Matrixport said: “ETFs will promote the development of the cryptocurrency space, and based on Gensler’s comments in December 2023, he still believes that the industry needs stricter compliance.”

“From a political perspective, there is no reason to approve a spot Bitcoin ETF to legitimize Bitcoin as an alternative store of value.”

While the report appeared on the market, Matrixport did not provide concrete evidence as to why the ETF was not approved.

The official deadline for SEC approval begins on January 4th and runs through January 10th.

“Cannot grow vertically”

Trader, analyst and podcast host Scott Melker, have no idea Why Matrixport believes a Bitcoin ETF will be rejected by the SEC again.

Others, meanwhile, believe that yesterday’s liquidation was not unusual and was, in fact, part of the usual behavior of Bitcoin bull runs.

“Everyone is speculating on what’s going on, but Bitcoin hasn’t been selling off too much because of some silly reports about ETF rejections,” said Joe Carlasare, a litigation attorney who focuses on cryptocurrencies. say With subscribers on the X Platform (formerly Twitter).

“Bitcoin is selling off because there is no asset that can grow vertically and is vulnerable to massive liquidation with a prolonged squeeze. Overall, the market is overbought.”

Meanwhile, Matrixport predicts that the market will continue to decline slightly if the forecast fails to materialize.

“If the SEC rejects, we may see a cascading liquidation as most of the additional $5.1 billion in long Bitcoin futures contracts will be unencumbered. We will see a rapid 20% drop in Bitcoin price back to 36,000 USD to USD 38,000 range.”