Bitcoin Plummets to $40,600 Amid Uncertainties of ETF Approval
The Bitcoin price has dropped by 10% in 1 hour, falling from $45,400 to $40,600, as the market awaits the US Securities and Exchange Commission (SEC) decision on a series of spot Bitcoin Exchange-Traded Funds (ETFs). The deadline for the SEC to approve or deny the ETFs is January 10, 2024, but experts have different opinions on the outcome and its impact on Bitcoin.
Some analysts, such as Bloomberg’s Eric Balchunas and James Seyffart, are optimistic that the SEC will approve the ETFs, which could boost Bitcoin’s market value and attract more institutional investors. They estimate a 10% chance of rejection, mainly due to the SEC needing more time to review the proposals.
Others, such as Matrixport, are more cautious and expect the SEC to delay the approval until the second quarter of 2024, citing regulatory challenges and the political climate under SEC Chair Gary Gensler. They also warn that a delay or rejection could trigger a 20% correction in Bitcoin’s price, as many speculators may unwind their positions and take profits.
The anticipation of ETF approval has been a major driving force in the recent market dynamics, leading to increased investments. A decision against the ETFs could result in a rapid unwinding of these positions, potentially causing a sharp decrease in Bitcoin prices. We project the approval will pump $BTC to $58k while the rejection will make Bitcoin fall below $40k with support at $35k. The Bull run will start this year so every dip is a great opportunity to buy any potential coins/tokens as cryptoS will be here to stay.