Matrixport Bold Bitcoin Forecast: Anticipating A Dip To $36k As SEC Weighs BTC Spot ETF Approval

The financial services platform Matrixport has sent ripples through the crypto sphere with its recent daring predictions regarding Bitcoin’s price and the Securities and Exchange Commission’s (SEC) position on the decision for a Bitcoin Spot ETF.

In their latest analysis, Matrixport forecasts that the SEC is likely to dismiss all Bitcoin spot ETFs in January, a move that could potentially lead to a significant downturn in the value of Bitcoin, plummeting to as low as $36,000.

In the wake of this revelation, market shockwaves ensued, compelling Matrixport to counsel investors on adopting protective strategies. Suggestions include exploring defensive options like acquiring put options or actively participating in the direct shorting of Bitcoin.

Matrixport’s analysis disrupts the optimistic projections for Bitcoin’s future, pointing to the SEC’s probable disapproval of spot ETFs as a crucial element. In contrast to the crypto platform’s previous bullish outlook, they currently doubt the SEC’s openness to embracing cryptocurrencies.

Simultaneously, the report underscores the prevailing impact of Democratic leadership at the SEC, specifically emphasizing Chairman Gary Gensler’s measured stance toward cryptocurrency regulation. Furthermore, Matrixport posits the likelihood of a postponement in ETF approvals, extending the timeline until the second quarter of 2024, thereby tempering expectations of an immediate upswing in the market.

Matrixport Anticipates SEC Rejection Impact On Market

Moreover, the company argues that the ongoing surge of capital flowing into the crypto market, fueled by hopes of ETF approval, may lead to substantial sell-offs in the event of SEC disapproval. The report highlights that approximately $10 billion out of an additional $14 billion in investments is potentially tied to optimistic expectations surrounding ETFs. Noteworthy is the report’s anticipation of a swift 20% downturn in Bitcoin’s value, regressing to a bracket of approximately $36,000-$38,000, should the SEC turn down the ETF proposals.

As the foreboding deadline of Jan 5, 2024, approaches, Matrixport strongly advises traders to safeguard their long-term exposure by exploring protective strategies. Notably, the suggestion involves acquiring put options with a $40,000 strike, expiring at the close of January, or considering outright short positions using options.

In the face of a prospective setback from the SEC, Matrixport remains optimistic about Bitcoin’s long-term prospects, envisioning a climb beyond the $42,000 threshold by the end of 2024—marking a return to its starting point for the year. However, The analysis points to historical patterns in US election years and Bitcoin mining cycles and underscores the potential for a significant rally.

As of the latest update, Bitcoin’s value has dipped by 1.99% since yesterday, settling at $44,467.42. In the past 24 hours, the cryptocurrency peaked at $45,503.24 and touched a low of $44,412.40.

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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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