Bitcoin’s notorious volatility was evident on Wednesday, as it experienced a significant drop of over 4.5%.
This decline was triggered by an article from Matrixport, a crypto-focused financial services platform, titled ‘Why the SEC Will Reject the Upcoming Spot BTC ETF Applications’.
Matrixport argued that the recent flurry of bitcoin-based ETF applications from major players like BlackRock, VanEck, Grayscale, and Ark Invest, failed to meet a crucial criterion for approval by the Securities and Exchange Commission (SEC).
This opinion piece, despite its bullish tone, led to a sharp decrease in Bitcoin’s value in the spot markets, highlighting the sensitive and volatile nature of cryptocurrency markets where even minor triggers can lead to significant reactions.
Eric Balchunas, a Senior ETF analyst at Bloomberg, questioned Matrixport’s author Markus Thielen on Twitter about the basis of his rejection prediction, asking if it was grounded in insider information or merely personal speculation.
Thielen reaffirmed his belief that the SEC would reject these applications. This situation reveals Bitcoin’s relative immaturity as an asset class, regardless of whether these ETF applications are approved or denied.
Following the publication, Bitcoin’s value plunged to a low of $40,750 from a high of $45,500, but it has since made a partial recovery.
The Bitcoin price is $42,872.87, a change of -5.41% over the past 24 hours as of 10:23 a.m.
