Bitcoin Plunges to $41,454 Amid Speculation of SEC Rejection
Bitcoin experienced a significant drop today, with its value plunging to an intraday low of $41,454 on the Bitstamp exchange. Market analysts attribute this sudden decline to speculations about the Securities and Exchange Commission (SEC) potentially rejecting several Bitcoin ETF proposals this month. Markus Thielen, an analyst at Matrixport, believes that recent applications might not meet the stringent criteria required for the SEC’s much-coveted nod. The widely expected listing of prominent Wall Street firms such as JPMorgan as authorized participants for potential Bitcoin-linked ETFs had fueled optimism for imminent approval. However, the looming possibility of a rejection has cast a shadow over these expectations.
Market Downturn: Ether and Solana Join Bitcoin’s Double-Digit Drop
The cryptocurrency market mirrored Bitcoin’s downturn, with other major digital assets like Ether and Solana experiencing double-digit drops. This collective slump occurs as Bitcoin commemorates 15 years since the mining of its genesis block. Despite previous bullish predictions from financial analysts, the market’s response has been predominantly bearish. Traders are now anxiously observing whether this downward trend will continue or if the market can regain its footing.
Matrixport’s Optimistic Projection on Bitcoin ETF Approval Shattered as Price Collapses
Matrixport had earlier forecasted a surge in Bitcoin’s price to $50,000, contingent on the approval of a Bitcoin Spot ETF. This optimism was grounded in the belief that ETF approval would legitimize Bitcoin in institutional portfolios and potentially lead to substantial fiat inflows. However, the recent price collapse has shattered these projections. Analyst Eric Balchunas remains optimistic about the odds of a spot Bitcoin ETF being approved this month, questioning Matrixport’s sources. Traders and investors are eagerly awaiting the SEC’s decision, which will have a significant impact on Bitcoin’s future trajectory.
Natural Correction or SEC Rejection? Analysts Debate Bitcoin’s Downturn
Some market participants attribute the price collapse to the rumored ETF rejections, but some other analysts, like Joe Carlasare, offer a different viewpoint. Carlasare argues that the sell-off is a natural market correction, labeling the situation as an “overbought market” undergoing a “long squeeze.” Regardless of the cause, the sharp decline in Bitcoin’s value has shaken the confidence of many investors. It remains to be seen whether the market will stabilize or if further volatility awaits.
Liquidation Data Reveals Massive Losses as Overbought Market Undergoes Long Squeeze
The recent liquidation data from CoinGlass supports the argument that the market was overbought and due for a correction. In the last 24 hours, approximately 190,619 traders were liquidated, with total liquidations amounting to an astounding $657.23 million. The largest single liquidation order, valued at $14.26 million, was reported on Huobi. These massive losses highlight the risks inherent in the cryptocurrency market, which is known for its heightened volatility. As the market undergoes this long squeeze, traders and investors must carefully navigate the fluctuations and adjust their strategies accordingly.
Analyst comment
1. Negative news: Bitcoin Plunges to $41,454 Amid Speculation of SEC Rejection. Analysts believe recent Bitcoin ETF proposals might not meet SEC criteria, casting doubt on approval prospects.
2. Negative news: Market Downturn: Ether and Solana Join Bitcoin’s Double-Digit Drop. The cryptocurrency market follows Bitcoin’s decline, traders uncertain if the downward trend will continue or if the market can recover.
3. Negative news: Matrixport’s Optimistic Projection on Bitcoin ETF Approval Shattered as Price Collapses. Optimism for Bitcoin ETF approval fades after recent price collapse.
4. Neutral news: Natural Correction or SEC Rejection? Analysts Debate Bitcoin’s Downturn. Some attribute the decline to rumored ETF rejections, while others see it as a natural market correction.
5. Negative news: Liquidation Data Reveals Massive Losses as Overbought Market Undergoes Long Squeeze. The market was overbought, leading to significant liquidations and highlighting the risks of cryptocurrency investing. Traders and investors must adapt to the ongoing volatility.
