Bitcoin ETF Rejection Report Circulates As Bitcoin Turns 15
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A swift 10% plunge in Bitcoin’s price earlier today serves as a reminder of the asset’s volatility. And while a contrarian report by Matrixport predicting SEC rejections of spot BTC ETFs garnered attention and may have been a trigger, analysts attribute over-leveraged bullish positions as the main factor priming the market for a pullback.
Leverage reached extreme levels prior to today’s flash crash, leaving Bitcoin highly exposed on the downside. The Matrixport report rejecting imminent ETF approval sparked long liquidations and cascading selling. But with consensus still expecting eventual SEC sanction of Bitcoin ETFs, the sudden decline looks more akin to shaking out unsustainable speculation before continuing an upward march.
This follows a major milestone for Bitcoin as it reached $45,000 yesterday, with Ethereum topping $2,300. This recovery comes after both hit 12-month lows in January 2023. Driving the renewed bullish momentum is anticipation that the SEC may finally approve spot Bitcoin exchange-traded funds (ETFs) in the US by the January 10th deadline.
In a major reversal, CNBC’s Jim Cramer has turned bullish on Bitcoin after previously forecasting declines. On Tuesday, Cramer praised Bitcoin as a “technological marvel” and stated “you can’t kill it,” a marked shift from his bearish calls last fall during the FTX fallout. The MAD Money host cited Bitcoin’s rise above $45,000 for the first time in 21 months as influencing his change of heart.
Even with its latest stumble, we wish Bitcoin a happy 15th birthday! It’s been a decade and a half of growing pains, the arduous years since Bitcoin arrived on the genesis block. And like any teenager, it still has some growing up to do.
Happy birthday, Bitcoin! After all the wild ups and downs, here’s to more exciting years ahead. 🎉
Today’s Newsletter
- Bitcoin ETF may get rejected and trigger 20% price drop, Matrixport predicts
- Bitcoin climbs over $45,000 for the first time since 2022
- Jim Cramer capitulates on Bitcoin: ‘technological marvel … it’s here to stay’
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MARKETS
Bitcoin ETF may get rejected and trigger 20% price drop, Matrixport predicts
A sudden 10% slump in Bitcoin prices sparked predictable panic in some corners of the crypto market. But context matters — leverage had climbed astronomical levels, reactive traders hung on every ETF prediction, and unsustainable speculation ran rampant. In other words, conditions were ripe for a violent pullback. This wasn’t a random flash crash but rather an overdue purging of instability amid still-favorable fundamentals.
With leverage resetting, speculation cooled, yet consensus around an eventual ETF green light holding strong, volatility should subside. The core bull case lives on. Whether through eventual regulatory approval or other catalysts, most analysts foresee fresh all-time highs for Bitcoin later this year. So this week’s tumble served more as growing pains for the young asset class rather than negating its maturing outlook. [cryptobriefing]
BITCOIN
Bitcoin climbs over $45,000 for the first time since 2022
Bitcoin has bounced back above $45,000, while Ethereum topped $2,300. This recovery comes after both cryptocurrencies hit their lowest prices in over a year during January 2023. Driving renewed optimism is anticipation that the SEC may approve spot Bitcoin ETFs in the US by January 10th.
Crypto ETFs allow mainstream investors exposure to digital assets via regulated funds traded on stock exchanges. Indications that the SEC might finally sanction Bitcoin ETFs have boosted prices. Election cycles and upcoming Bitcoin “halvings” suggest the macro climate should remain favorable. [cryptobriefing]
BITCOIN
Jim Cramer capitulates on Bitcoin: ‘technological marvel … it’s here to stay’
CNBC’s Jim Cramer has turned bullish on Bitcoin from previously forecasting declines. Cramer now praises Bitcoin as an enduring “technological marvel”, crediting its rise above $45,000 for changing his stance. Speculation is mounting that the SEC will approve spot Bitcoin ETFs this week before the January 10th deadline.
However, Cramer questions if some investors merely seek quick gain from approvals. He also warns SEC decisions could still disappoint bullish expectations. Nonetheless, his admission that “you can’t kill” Bitcoin signals growing Wall Street acceptance. [coindesk]
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