Bitcoin (BTC) Price Slumps Over Unconfirmed ETF Rejection News, Analyst Noted

In a recent turn of events, Bitcoin’s (BTC) price experienced a sharp decline following unconfirmed reports of the rejection of a Bitcoin Exchange-Traded Fund (ETF) application. The crypto market, known for its sensitivity to regulatory developments, responded with increased volatility, prompting various reactions from industry experts.

Expert Weighs in On Bitcoin Price Slump

Michael van de Poppe, CEO and founder of MN Trading, took to the X platform to emphasize the importance of a Bitcoin Spot ETF, calling it one of the most crucial events in Bitcoin’s history. He expressed concern over the market’s vulnerability to manipulation, citing the second instance of market turbulence caused by unconfirmed information. 

Michael van de Poppe advised investors to “buy the dips and be patient” in the face of market uncertainty.

On the other hand, Eric Balchunas, Bloomberg’s ETF analyst, raised doubts about the credibility of the rejection report. Balchunas questioned the source’s reliability and highlighted that he had heard nothing to indicate a potential rejection. 

People tagging me like crazy on this “rejection” report. We have heard nothing to indicate anything but approval but I want to give the guy benefit of doubt so I’m asking if he has any sources or if he just speculating. He seems to be bitcoin bull and recently tweeted… https://t.co/KV7k4NXtba

— Eric Balchunas (@EricBalchunas) January 3, 2024

The primary trigger for the market turmoil was a report from crypto financial services platform Matrixport, asserting that the U.S. Securities and Exchange Commission (SEC) “will reject” the Bitcoin Spot ETF. While the report lacked concrete evidence, it made a notable impact on market sentiment.

Bitcoin’s Current Market Condition

As highlighted in a previous report, the crypto market’s early-year rally, driven by Bitcoin’s surge above $45,000, has lost momentum. 

Bitcoin’s price witnessed a 6.5% dip in the last 24 hours, settling at $42,301 as of the time of writing. Markedly, the overall market cap experienced a 9% decline to $1.6 trillion, with Bitcoin dominance holding at 51.6%. Ethereum (ETH) also faced an 8% price drop, hitting a low of $2,113.

The market’s bearish sentiment was further underscored by over $650 million in liquidations within 24 hours, with a staggering $500 million liquidated in just one hour. More than 176,000 traders faced liquidation, accompanied by the largest single liquidation order on Huobi’s BTCUSDT worth $14.26 million.

Moving forward, the official window for the SEC to approve or reject the ETF begins on January 4 and extends through January 10. Traders and investors are eagerly awaiting an official statement from regulatory authorities to provide clarity on the situation. The market remains on edge, with conflicting opinions and heightened volatility shaping the immediate future.