Matrixport analysts, who recently expected spot Bitcoin ETFs to be approved and the BTC price to rise to $50,000, changed their minds.
Accordingly, Matrixport analysts claimed in their latest report that the SEC will reject all Bitcoin spot ETFs in January and final approval could come in the second quarter.
Analysts also advised investors to take a short position, arguing that the Bitcoin price would drop to 36,000 to 38,000 in the face of a rejection decision from the SEC.
“We thought Bitcoin could reach $45,000 by Christmas, Bitcoin Spot ETFs could be approved by the SEC in January, and BTC could rise to $50,000 by the end of January 2024.
However, we believe that the applications are at a critical stage and the requirements specified by the SEC are not fully met.
Because SEC Chairman Gary Gensler does not adopt cryptocurrency in the USA, and Gensler thinks that the crypto industry still needs stricter compliance rules, according to his comments in December 2023. At this point, the SEC may reject ETF applications in January, with possible approval delayed until the second quarter of 2024.
This rejection could cause the Bitcoin price to drop by 20% very quickly and bring it to the $36,000-$38,000 range.
“If no approval is received from the SEC by Friday, January 5, 2024, we, as Matrixport, recommend that investors buy put options and make direct short sales.”
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/matrixport-knew-the-drop-in-bitcoin-here-is-that-report/