A well-known market analyst, Michael van de Poppe, mentioned that the unconfirmed news of a potential rejection of the spot Bitcoin ETF triggered a selling spree in the market. This uncertainty surrounding the ETF decision had an impact on investor sentiment, leading to a decline in market prices.
In a recent twist, the price of Bitcoin (BTC) took a nosedive amid unconfirmed reports suggesting the rejection of a Bitcoin Exchange-Traded Fund (ETF) application. The cryptocurrency market, known for its responsiveness to regulatory news, witnessed heightened volatility, triggering diverse responses from experts in the industry.
Market Turmoil Amid Bitcoin ETF Uncertainty
In the wake of unconfirmed reports suggesting the rejection of a Bitcoin Exchange-Traded Fund (ETF) application, Michael van de Poppe, CEO of MN Trading, highlighted the significance of a Bitcoin Spot ETF, considering it a pivotal event in Bitcoin’s history. Expressing concerns about market vulnerability to manipulation, he emphasized the need for investors to “buy the dips and be patient” during times of uncertainty.
People tagging me like crazy on this “rejection” report. We have heard nothing to indicate anything but approval but I want to give the guy benefit of doubt so I’m asking if he has any sources or if he just speculating. He seems to be bitcoin bull and recently tweeted… https://t.co/KV7k4NXtba
— Eric Balchunas (@EricBalchunas) January 3, 2024
Contrary to the report, Eric Balchunas, Bloomberg’s ETF analyst, cast doubt on the credibility of the rejection news. He questioned the reliability of the source and mentioned that he had received no indications of a potential rejection. The market turmoil stemmed from a report by crypto financial services platform Matrixport, asserting that the U.S. Securities and Exchange Commission (SEC) “will reject” the Bitcoin Spot ETF. Despite the lack of concrete evidence, the report significantly impacted market sentiment.
Crypto Market Faces Turbulence Amid Uncertainty and Liquidations
The early-year rally in the cryptocurrency market, fueled by Bitcoin’s surge beyond $45,000, has hit a roadblock, losing momentum in recent days. Bitcoin experienced a notable 6.5% dip in the last 24 hours, settling at $42,301, contributing to an overall market cap decline of 9% to $1.6 trillion. Bitcoin dominance remains at 51.6%, and Ethereum (ETH) also faced an 8% price drop, reaching a low of $2,113.
The market’s bearish sentiment was accentuated by over $650 million in liquidations within a 24-hour period, with a staggering $500 million liquidated in just one hour. This market turbulence led to liquidation orders affecting more than 176,000 traders, including the largest single liquidation order on Huobi’s BTCUSDT, amounting to $14.26 million.
Adding to the market’s uncertainty is the approaching official window for the U.S. Securities and Exchange Commission (SEC) to approve or reject the Bitcoin Exchange-Traded Fund (ETF). This crucial period begins on January 4 and extends through January 10, leaving traders and investors eagerly anticipating an official statement for clarity. With conflicting opinions and heightened volatility, the market remains on edge, awaiting regulatory decisions that could significantly influence its immediate future.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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