From Bullish To Bearish, Bitcoin Plunges More Than 6% Amid Matrixport’s Contradictory Reports
January 03 2024 - 8:00PM
NEWSBTC
Matrixport, a crypto financial services platform, has recently made
headlines with the release of two conflicting articles on January
2nd about the future of Bitcoin (BTC). The first publication,
radiating optimism, projected that Bitcoin’s price could soar to
$50,000 in January, spurred by the potential approval of Bitcoin
spot exchange-traded funds (ETFs). This bullish stance was further
grounded by disclosing a possible announcement that could
happen on January 8th, 9th, or 10th. Related Reading: Matrixport
Foresees Bitcoin Hitting $50,000 Price Mark: Here’s When
Matrixport’s Sudden Shift: A Bullish Sentiment And Then Bearish
Counterpoint Matrixport’s initial bullish report highlighted the
transformative impact a Bitcoin spot ETF approval could have on the
crypto market. The anticipated approval is seen as a “pivotal”
moment that would “legitimize” Bitcoin in the eyes of institutional
investors and potentially unlock a significant influx of capital
into the crypto market. This sentiment echoed the growing optimism
within the crypto community, with many stakeholders eagerly
awaiting regulatory endorsements that could catalyze Bitcoin’s
ascent. However, in a surprising twist, Matrixport released a
second article later the same day titled “Why the SEC will REJECT
Bitcoin Spot ETFs again.” This piece presented a starkly bearish
perspective, contrasting their earlier optimistic forecast. The
article emphasized the political composition of the US Securities
and Exchange Commission (SEC), noting that the current Democratic
dominance and Chair Gary Gensler’s cautious stance towards crypto
might “diminish the likelihood of a spot ETF approval.” The report
argued that such approval would validate Bitcoin as an alternative
store of value, a move Gensler “might not be ready to make.” The
firm noted in the bearish article: An ETF would certainly enable
crypto overall to take off, and based on Gensler’s comments in
December 2023, he still sees this industry in need of more
stringent compliance. From a political perspective, there is no
reason to approve a bitcoin spot ETF that would legitimize Bitcoin
as an alternative store of value. Bitcoin Plunge And Crypto
Community Reaction Matrixport’s bearish outlook had immediate
repercussions in the crypto market. Bitcoin experienced a notable
decline, shedding around 6% of its value and slipping below the
$43,000 mark. This downturn wasn’t isolated to Bitcoin alone;
Ethereum and other altcoins also saw significant drops, with Solana
plummeting by nearly 10%. Data from Coinalyze indicated over $400
million in altcoin liquidations, with long positions bearing the
brunt of this market shift. Largest total market liq event since
the uptrend from 25k began in August. Largest alts liq event in 2
years. Brought to you by a Matrixport intern.
pic.twitter.com/4z71FbkUfB — Hsaka (@HsakaTrades) January 3, 2024
The publication of these contrasting articles by Matrixport ignited
a wave of controversy within the crypto community. Some observers
pointed to Matrixport’s founder, Jihan Wu, a prominent Bitcoin Cash
supporter, leading to speculations about the firm’s intentions.
This is the guy who founded Matrixport, a supporter of Bitcoin
Cash. If anyone believes anything that Matrixport publishes, I have
a bridge to sell to you. pic.twitter.com/cxaxSOcDx7 — James Van
Straten (@jimmyvs24) January 3, 2024 This revelation sparked heated
discussion, with many saying that Matrixport’s actions were driven
by market manipulation motives, especially in light of the market
turbulence that followed the viral articles. Related Reading:
Bitcoin Crashes To $41,500 As ETF Approval Hangs In Balance:
Experts Despite the current market condition, as always, some are
still bullish, while some even refuse to believe MatrixPort was the
cause of this market downturn. Mike Alfred, an investor serving as
a board member of BTC miner Iris Energy, already shared his bullish
take, noting, “Big money isn’t buying this.” Top tier Bitcoin
miners have shaken off the Matrixport market manipulation and have
gone green or moved back towards breakeven. Big money isn’t buying
this. — Mike Alfred (@mikealfred) January 3, 2024 Featured image
from Unsplash, Chart from TradingView
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