Bitcoin’s sharp fall on Jan. 3 suggests that market participants are nervous ahead of the SEC's long-awaited decision on the spot Bitcoin ETF applications.
Bitcoin (BTC) led the cryptocurrency markets lower on Jan. 3, indicating the market’s nervousness about the fate of the spot Bitcoin exchange-traded funds (ETFs) applications. One of the reasons being talked about is the Bitcoin ETF denial report by the crypto financial services platform Matrixport.
However, it is prudent to note that the report fails to provide hard evidence on why the ETFs will be rejected. In contrast, Bloomberg ETF analyst James Seyffart maintained a 90% approval odds of the ETFs by Jan. 10.
Although the fall cools down the bullish sentiment in the short term, it does not alter the prevailing trend. Market observers will keep a close eye on the regulator, and any positive news on the approvals of the Bitcoin ETFs could cause a sharp reversal to the upside.
