Jihan Wu, the founder of Bitdeer and Matrixport, recently addressed the situation, emphasizing that the dissemination of the report was unintended and beyond the control of Matrixport.
Market Reaction and Matrixport's Report:
On January 3, the price of Bitcoin (BTC) witnessed a dip of more than 10%, dropping to $40,750 from $42,925 before recovering. This market movement coincided with the release of a report by Matrixport analysts expressing skepticism about the approval of spot Bitcoin ETFs. The report suggested that the current leadership of the U.S. Securities and Exchange Commission (SEC), primarily composed of Democrats, might not be favorable towards approving Bitcoin Spot ETFs. The analysts pointed out that SEC Chair Gensler's stance on cryptocurrency in the U.S. raised doubts about the likelihood of approval.
Jihan Wu clarified that the release of the report was not a deliberate action by Matrixport and was beyond the company's control. He highlighted that Matrixport analysts operate independently, providing their opinions without any interference from management.
Matrixport's founder dismissed the notion that the report was responsible for the Bitcoin price decline. Instead, Wu attributed the market volatility to the "high funding fees" in Bitcoin perpetual markets and a recent pullback in crypto-related stocks.
Market Volatility and Bitcoin's Future:
In response to the ongoing market turbulence, Jihan Wu expressed his perspective on the significance of the current situation. He stated that, considering Bitcoin's history and future prospects, the current volatility and uncertainties surrounding the potential approval of a Bitcoin ETF in January 2024 are ultimately inconsequential.
Wu maintained confidence in the inevitability of SEC approval for a Spot ETF, predicting that such approval would attract fresh investments into Bitcoin. He emphasized that, in his opinion, the approval of a Bitcoin Spot ETF by the SEC is a matter of time and will contribute positively to Bitcoin's growth.
The recent market fluctuations and the corresponding skepticism expressed in the Matrixport report have stirred discussions within the cryptocurrency community. Jihan Wu's clarification regarding the unintended dissemination of the report and his optimistic outlook on the approval of a Bitcoin Spot ETF offer insights into the dynamics influencing market sentiment. As the cryptocurrency landscape continues to evolve, investors remain attentive to regulatory developments and their potential impact on the market.