See More

SEC Will Reject All Bitcoin Spot ETFs, Expect BTC Price Dip

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • Several commentators are expecting the Bitcoin price to correct after an SEC rejection of Bitcoin ETFs this January.
  • Matrixport and Quantum Economics CEO Mati Greenspan predict it is not politically viable for Gary Gensler to pivot on BTC.
  • CryptoQuant argues that the price of Bitcoin will retrace to $32,000 by the end of January due to high unrealized profits.
  • promo

Crypto financial services company Matrixport expects the Democrat-heavy US Securities and Exchange Commission (SEC) panel to reject all spot Bitcoin exchange-traded fund (ETF) applications, which may result in a downward price correction.

The SEC chairman, Gary Gensler, is unlikely to allow the product, and approval makes no sense from a political standpoint. Gensler has remained steadfast in enforcing stricter crypto rules. It would also make no sense for the SEC to legitimize Bitcoin as an alternative store of value.

Gary Gensler and SEC Will Block Bitcoin ETFs

Mati Greenspan, the Founder and CEO of Quantum Economics, told BeInCrypto earlier this month he thinks Gensler is unlikely to want to disappoint his allies by approving an ETF.

Read more: An Introduction to Crypto Options Trading

“I doubt very much that Gary Gensler is going to approve any kind of crypto-related ETF. I think if its within his power, he’s going to do anything he can to delay the crypto innovation in favor of the big bankers that is beholden to,” Said Mati Greenspan.

Their sentiments were echoed by a market commentator, Greekslive on X, who thinks that weaknesses in crypto-related stocks and recent sell-offs will have reinforced skepticism around approvals. Options market data suggests that institutional investors are “not very bullish on the ETF market,” they observed.

K33 Research’s Vetle Lund predicts that Bitcoin ETF approvals will be a “sell the news” event.

“A sell-the-news event could become a self-fulfilling prophecy as a significant share of short-term market participants has eyeballed the event as an area for profit taking, Said Lund.

Bitcoin Price Predictions After ETF

Renowned analytics firm CryptoQuant predicts that current high unrealized gains that preceded previous price corrections mean Bitcoin could fall to $32,000 by the end of January. Despite having a bearish thesis for the ETF approvals, Matrixport predicts Bitcoin will end 2024 higher than this month.

Bitcoin ended last year over 150% higher than its January 2023 level. The deadline for the decision on the first Bitcoin ETF approval is on January 10, 2024.

Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach

Do you have something to say about an upcoming Bitcoin price correction, an SEC ETF rejection, or anything else? Please write to us or join the discussion on our Telegram channel. You can also catch us on TikTokFacebook, or X (Twitter).

Top crypto platforms in the US | February 2024

Trusted

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

David-Thomas.jpg
David Thomas
David Thomas graduated from the University of Kwa-Zulu Natal in Durban, South Africa, with an Honors degree in electronic engineering. He worked as an engineer for eight years, developing software for industrial processes at South African automation specialist Autotronix (Pty) Ltd., mining control systems for AngloGold Ashanti, and consumer products at Inhep Digital Security, a domestic security company wholly owned by Swedish conglomerate Assa Abloy. He has experience writing software in C,...
READ FULL BIO
Sponsored
Sponsored