Matrixport analysts said the U.S. Securities and Exchange Commission (SEC) in January Bitcoin is discussing the possibility of rejecting spot ETFs.
In the company’s latest report titled “Why the SEC Will Reject Bitcoin Spot ETFs Again,” analysts expect all applications for spot BTC ETFs to receive approval in the second quarter of 2024. As a result, analysts predict that the BTC price may drop to $36,000-38,000 in January.
Experts also reminded that the current five-member commission leadership, which is critical to ETF approval, is dominated by Democrats. Moreover, the head of the regulator, Gary Gensler, does not support cryptocurrency in the US and spot Bitcoin ETFIt may not even be easy to wait for them to vote to approve them.
From a political perspective, there is no reason to approve a Bitcoin Spot ETF that would legitimize Bitcoin as an alternative store of value. At least $14 billion in extra fiat and leverage has been poured into crypto since investors began betting on an ETF approval in September 2023.
NEWS CONTINUES BELOW
However, despite such expectations, analysts expect further growth in BTC price. The two main catalysts that will determine the cost of Bitcoin by the end of the year are the US presidential elections and the BTC halving.
cryptocurrency Many in the community continue to hold out for approval for spot Bitcoin ETFs by January 10. Positive emotions from traders associated with the possible approval of a spot Bitcoin ETF in the United States contributed to the growth of the rate of the first cryptocurrency. In early January, the price of BTC surpassed $45,000 for the first time since April 2022, but then recorded a sharp correction.