Bitcoin’s 15th Anniversary: Price Tumble Amidst ETF Uncertainty

Bitcoin, the first cryptocurrency ever created, has seen abrupt, large, and fast withdrawals on the 15th anniversary of its ‘Genesis’ day, which has erased the majority of its gains over the last 30 days. CoinGecko provided information that Bitcoin’s value dropped below $42,000 on January 3, causing a valuation loss of at least $3,000 in just two hours.

Bitcoin 24-hour price chart. Source: CoinGecko

At the time of this writing, CoinMarketCap recorded Bitcoin’s intraday high of $45,600, which then plummeted to as low as $40,700. CoinGecko statistics reveal that Bitcoin is currently trading at $42,608, representing a decrease of roughly 6% over the previous twenty-four hours.

The cryptocurrency has also experienced a decline of 1.5% during the past 14 days, while for the past 30 days, it has seen absolutely no advances at all. Matrixport, a digital financial services platform, recently reversed their prediction that the United States Securities and Exchange Commission would approve the first spot Bitcoin exchange-traded funds (ETFs) in January 2024, resulting in a significant decrease in the price of Bitcoin (BTC).

On January 1, Matrixport expressed their conviction that Bitcoin would skyrocket to $50,000, spurred by reasons such as an “imminent Bitcoin spot ETF approval.” Matrixport went on to voice their confidence in X, which was once known as Twitter.

Matrixport also stated that permission for a spot Bitcoin exchange-traded fund could be revealed earlier than anticipated by the majority of traders, possibly on January 8, 9, or 10. Matrixport has made a U-turn on its projection, which it did just one day after it issued a forecast on likely approvals in 2024.

Matrixport providing positive forecast on potential approval of a spot Bitcoin ETF in January 2024. Source: X

On January 2, Matrixport updated its estimate to suggest that the SEC will reject all Bitcoin spot ETFs in January and that approvals for spot Bitcoin ETFs won’t arrive before the second quarter of this year. The community swiftly responded to Matrixport’s contentious estimates, with many individuals accusing the company of manipulating the price of Bitcoin.

Alistair Milne, an investor in Bitcoin, observed that Jihan Wu, a Chinese millionaire cryptocurrency entrepreneur and co-founder of the cryptocurrency mining company Bitmain, was the founder of Matrixport.

James Van Straten, an industry expert, observed that Wu is a big proponent of Bitcoin Cash, a hard split of Bitcoin implemented in 2017. I have a bridge to sell to you,” the analyst stated. “If anyone believes anything that Matrixport publishes, I have a bridge to sell to you.”

The revelation has also been met with reactions from several prominent Bitcoin ETF observers. “We have heard nothing to indicate anything other than approval, but I want to give the guy the benefit of the doubt, so I’m asking if he has any sources or if he’s just speculating,” analyst Eric Balchunas of Bloomberg ETF wrote on X.

“We have heard nothing to indicate anything other than approval.” In a later statement, Balchunas remarked, “To be clear, I am not saying that rejection is completely impossible.” He went on to explain, “But we have heard nothing to indicate that.”