Bitcoin and Crypto Prices Crash Amid Fears of Denied Wall Street ETF
The prices of Bitcoin and various cryptocurrencies, including Ethereum, XRP, and Solana, have experienced a sudden crash in response to mounting fears that the U.S. Securities and Exchange Commission (SEC) may deny the approval of a Bitcoin spot exchange-traded fund (ETF) sought by Wall Street. The Bitcoin price has dropped by approximately 10%, while Ethereum, XRP, and Solana have all seen declines ranging from 8% to 15%. Market sentiment has been heavily influenced by an analyst prediction that the SEC will delay its decision on the Bitcoin ETF until the next quarter.
Analyst Predicts SEC Will Push Bitcoin ETF Decision to Next Quarter
A report by Matrixport analyst Markus Thielen suggests that the SEC chairman, Gary Gensler, is not supportive of cryptocurrencies in the United States. Thielen believes it is unlikely that Gensler would vote in favor of approving Bitcoin spot ETFs. The report predicts that the SEC is likely to reject all proposals for a Bitcoin spot ETF in January, with possible approval expected in Q2 2024. Thielen’s analysis has created uncertainty in the market, triggering a sell-off and contributing to the recent price drop.
SEC Chair’s Stance on Crypto Raises Doubts Over Bitcoin ETF Approval
Thielen’s report highlights the lack of political motivation to approve a Bitcoin spot ETF that would legitimize Bitcoin as an alternative store of value. This viewpoint casts doubt on whether the SEC will grant approval, raising concerns among investors and market participants. The potential denial of a Bitcoin spot ETF approval by the SEC could result in a significant crash in the cryptocurrency market. Thielen warns that cascading liquidations may occur, leading to a rapid 20% decline in Bitcoin prices, potentially falling back to the $36,000 to $38,000 range.
Market Fears Denial of Bitcoin Spot ETF Could Trigger Crypto Crash
Many market watchers share Thielen’s concerns regarding the potential rejection of the Bitcoin spot ETF. As the SEC refrains from making an announcement in the first few days of January, which some had anticipated, anxieties have grown among investors. The failure to receive approval for a Bitcoin spot ETF could trigger a significant market downturn, as the ETF’s approval has been highly anticipated by institutional investors and the broader market.
Nervousness Mounts as Approval of Bitcoin ETF Hangs in the Balance
The delay and potential denial of a Bitcoin spot ETF approval have caused apprehension in the market. Investors and market participants are becoming increasingly nervous as the end of the speculative trade for the Bitcoin ETF nears. Uncertainty regarding the SEC’s decision looms, adding to market volatility and leading to heightened nervousness among crypto enthusiasts and investors alike.
The fate of the Bitcoin spot ETF remains uncertain, and the potential denial of approval by the SEC could have far-reaching consequences for the cryptocurrency market. As the market waits for further updates, investors are advised to closely monitor regulatory developments and brace themselves for potential market fluctuations.
Analyst comment
Negative news. The market is likely to experience further volatility and potential declines as fears of a denied Bitcoin spot ETF approval by the SEC mount. Investors should closely monitor regulatory developments and be prepared for market fluctuations.
