After a sharp decline of nearly 10%, Bitcoin struggles to recover.
After a sharp drop of nearly 10% earlier this week, Bitcoin is currently struggling to recover, with a price of around $43,056. This decline may be related to the approaching deadline for the SEC's possible approval of Bitcoin ETFs. Despite a partial rebound, Bitcoin is still 6.2% below its year-to-date high. This drop has led to a liquidation of over $600 million in the cryptocurrency market. Marcus Tullius, an analyst at Matrixport, expects the SEC to reject all Bitcoin ETF proposals, but Wu Jihan, the founder of Matrixport, believes this view is unrealistic. Overall, the current volatility of Bitcoin and the uncertainty surrounding the potential approval of Bitcoin ETFs in January 2024 are not significant.
Zhitong App has learned that after a sharp drop of 9.22% earlier this week, Bitcoin is currently struggling to recover. As of the time of writing, Bitcoin has remained relatively stable, trading at around $43,056. While Bitcoin has experienced a partial rebound from its low point on Wednesday, it still has a 6.2% gap from its year-to-date high.
The U.S. Securities and Exchange Commission (SEC) is approaching the deadline (January 10th) for potentially approving the first Bitcoin exchange-traded fund (ETF). Prior to this, on January 2nd, Bitcoin briefly reached its highest point in 21 months.
On Wednesday, Bitcoin and the broader cryptocurrency market suddenly crashed. According to Coinglass data, this downturn resulted in the liquidation of positions in major exchanges exceeding $600 million. This is the largest sell-off since December 11th.
Some speculate that this sudden drop was influenced by the views expressed in a report by Matrixport analyst Marcus, who predicted that the SEC would reject all Bitcoin ETF proposals this month.
In response to the discussions sparked by this report, Matrixport founder Wu Jihan stated on social media platform X, "It is unrealistic to believe that a report from Matrixport could trigger a market crash worth trillions of dollars."
In another post, Wu Jihan wrote, "Looking at the history and future prospects of Bitcoin, the current volatility and the uncertainty surrounding the potential approval of a Bitcoin ETF in January 2024 are ultimately not important."