US Stock Market Update | Bitcoin Plunges Over 10%, Related Stocks Follow Suit with Coinbase Down Nearly 4%
Bitcoin plummeted on Wednesday, falling more than 10% at one point, wiping out all gains since January 1st. Bitcoin-related stocks also followed suit, with Coinbase dropping nearly 4%, Bit Digital falling over 4%, Canaan Inc. dropping over 11%, Marathon Digital falling over 7%, and Riot Platforms falling over 8%. Concerns about the approval of a Bitcoin spot ETF have increased, and the likelihood of the ETF being approved is becoming smaller. The Bitcoin spot ETF could be approved as early as Tuesday or Wednesday, but financial services company Matrixport expects the SEC to reject all proposals in January.
Zhitong App learned that concerns about the imminent approval of Bitcoin spot ETF have started to emerge in the market. Bitcoin experienced a sharp decline on Wednesday, with a temporary drop of over 10%, wiping out all the gains since January 1st and resulting in derivatives exchanges liquidating $500 million in positions. Bitcoin-related stocks also declined, with Coinbase (COIN.US) falling nearly 4%, Bit Digital (BTBT.US) dropping over 4%, Canaan Inc. (CAN.US) plummeting over 11%, Marathon Digital (MARA.US) falling over 7%, and Riot Blockchain (RIOT.US) dropping over 8%.
"The possibility of ETF approval is becoming increasingly slim, and the market is in a stalemate," said options analysis website Greeks.Live. "The weakness of cryptocurrency stocks and the selling pressure on several cryptocurrency-related US stocks have also reinforced market skepticism." Last week, sources said that Bitcoin spot ETF could potentially be approved as early as Tuesday or Wednesday. However, financial services company Matrixport rejected optimistic expectations and stated, "We believe that none of the applications have met the key requirements of the U.S. Securities and Exchange Commission (SEC). These requirements may be met in the second quarter of 2024, but we expect the SEC to reject all proposals in January."