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Bitcoin ETF rejected? Cryptocurrency market sees a brutal selloff, losing nearly 600 million NT dollars

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Bitcoin ETF rejected? Cryptocurrency market sees a brutal selloff, losing nearly 600 million NT dollars

The U.S. stock market had a poor start in 2024, failing to continue the strong rally from the end of last year, with major indices closing in the red yesterday. As for Bitcoin, although it briefly surged on the first working day of the year, market confidence was weak. Yesterday, the trading institution Matrixport released a report stating that the SEC is expected to reject all Bitcoin spot ETF proposals in January. Bitcoin briefly fell to 40,750, dragging down other cryptocurrencies. According to data from Coinglass, $680 million in positions were liquidated in the past 24 hours, leading to a brutal sell-off for the bulls.

Matrixport analyst: Expects all ETF proposals to be rejected in January, with Bitcoin falling to 36K~38K.

The Fed Hawkish, U.S. Stocks Plunge Across the Board

The Federal Reserve released minutes from its December meeting last night, indicating that with recent declines in inflation, interest rates could peak and a rate cut may be needed in 2024. However, participants noted that the outlook for rate cuts is "exceptionally uncertain," leaving the possibility of further rate hikes. This also highlights the uncertainty surrounding the timing of a potential rate cut.

The U.S. stock market had a poor start in 2024, failing to continue the strong momentum from the end of last year, with major indices all closing in the red yesterday. The Dow fell nearly 300 points, Nasdaq dropped 1.18%, marking the fourth consecutive day of decline, and the S&P 500 closed down 0.8%, experiencing its first two-day decline at the beginning of the year since 2015.

The market will closely watch the non-farm payroll report on Friday.

Approval Deadline for Bitcoin Spot ETF Approaches, Crypto Market Tense

Yesterday, trading institution Matrixport released a report anticipating that the SEC will reject all Bitcoin spot ETF proposals in January and expects Bitcoin to correct to $36K~$38K. Amid the tense situation in the market, BTC briefly dropped to $40,750, ETH also briefly hit $2,100, and cryptocurrencies across the board declined. According to Coinglass data, $680 million in positions were liquidated in the past 24 hours, with long positions suffering a $590 million bloodbath.

Bloomberg Analyst Eric Balchunas Responds

Bloomberg ETF analyst Eric Balchunas, who has been widely tagged by people, clarified: "Other than approval, we haven't seen any signs."

He also responded to a tweet from Fox Business reporter Eleanor Terrett, who said: "The SEC is meeting with several exchange giants today to discuss the submissions of these spot ETF issuers."

Balchunas believes that if the SEC intended to reject or delay, it wouldn't be holding such meetings. He pointed out:

The SEC has been working back and forth with the issuers to make the 19b-4 filing more complete, indicating that approval is imminent, unlike the continuous resubmission of S-1 filings by issuers like BlackRock.

Note: 19b-4 is the filing submitted by exchanges, while S-1 is submitted by ETF issuers like BlackRock.

Matrixport co-founder Wu Jihan also responded to the doubts of the public: "The analyst operates independently, and the approval of the ETF is inevitable."

Matrixport co-founder Wu Jihan responded: The analyst operates independently, and the approval of the ETF is inevitable