ETF fear.The Value of Bitcoin Has Fallen Significantly. What is next ?
The cryptocurrency markets have entered a sharp sell-off in the last hour. Bitcoin experienced a rapid decline of up to 10%, falling from levels around $45,000 to $40,750 in a one-hour time frame.
The trigger for the sharp decline in the cryptocurrency markets is speculated to be the release of a report by the cryptocurrency platform Matrixport. The report suggests that the U.S. SEC could reject Bitcoin Spot ETFs. The report focuses on the possibility that Bitcoin could fall to between $36,000 and $38,000 in case of a rejection.
While there has been no official statement from the SEC side yet, the emergence of such a rumor has unsettled the market, leading to a sharp decline. There is a high expectation in the market for the approval of the ETF, and the report released by Matrixport seems to have created a bombshell effect in the market.
Moreover, some commentators believe that even if the ETF is approved, it could lead to a "sell the news" scenario, causing an initial downward reaction. Additionally, there are negative opinions that regulatory pressure on Bitcoin could increase further, potentially dampening investor enthusiasm.
In conclusion, although the SEC has not yet announced its decision, market volatility is increasing as the decision approaches. Volatility is likely to continue after the decision as well.
Currently, there is an average pullback of about 12% across the cryptocurrency markets, with the negative outlook persisting. After falling to $40,750, Bitcoin saw a recovery to around $42,200. Ethereum dropped towards $2,100 before rising towards $2,200. In the cryptocurrency futures markets, the size of the positions liquidated in the last hour reached $400 million.
