Crypto Market Speculates on Bitcoin Spot ETF Approval or Rejection

By: Eliza Bennet

The potential approval or rejection of Bitcoin Spot ETFs by the US Securities and Exchange Commission (SEC) is stirring a debate in the crypto sector. While investors are optimistic about the expected approval, Matrixport suggests that the SEC chair's negative attitude towards crypto could lead to the rejection of the applications. If rejected, Matrixport warns that Bitcoin's price could plummet to as low as $36,000.

The anticipation surrounding the possible approval has triggered a bull sentiment in the market, boosting the prices of Bitcoin and other cryptocurrencies. Yet, concerns arise that the announcement could turn into a 'sell the news' scenario where prices fall after the event announcement. Not all crypto experts concur with this perspective, arguing that the approval might create a bonanza as asset managers struggle for prominence.

Matrixport further points out some hurdles in the SEC's approval. For instance, Democratic commissioners, known for their anti-crypto sentiments, mostly vote for funds like the ETF. Added to this, SEC chair, Gensler's emphasis on the need for more stringent compliance in the sector indicates potential rejection of the ETFs. Therefore, any decision by the SEC is likely to significantly impact Bitcoin's trajectory.