- Analyst Markus Thielen predicts the SEC will reject all Bitcoin spot ETF proposals this month, causing a potential 20% price drop.
- Thielen’s prediction is based on political dynamics and concerns about compliance in the crypto industry.
- A rejection would be a major setback for the industry’s long-held goal of securing a spot ETF in the U.S.
Bitcoin prices tumbled today, down over 7%, amid growing anxieties about the Securities and Exchange Commission’s (SEC) stance on Bitcoin spot ETFs. Renowned analyst Markus Thielen of Matrixport cast a dark cloud over the industry, predicting an outright rejection of all pending ETF proposals by the SEC this month.
Thielen’s prediction hinges on the current political climate and lingering concerns about compliance within the crypto space. SEC Chair Gary Gensler has been vocal about his reservations regarding Bitcoin spot ETFs, highlighting rampant fraud and inadequate regulatory frameworks within the industry.
Should the SEC follow through with a blanket rejection, Thielen anticipates drastic consequences. He expects a wave of liquidations in the perpetual long Bitcoin futures market, potentially triggering a 20% price drop and pushing Bitcoin back down to the $36,000 – $38,000 range.
The prospect of a comprehensive rejection may come as a crushing blow to the industry’s years-long quest for a Bitcoin spot ETF in the U.S. Major asset managers like BlackRock, Fidelity, and Franklin Templeton. These have heavily invested in securing approval for their respective proposals.
Despite the gloomy outlook, Bitcoin has demonstrated resilience amidst previous turbulence. While today’s dip is worrisome, the cryptocurrency remains slightly positive for the year and has witnessed significant growth over the past quarter. The industry may yet find innovative ways to navigate the regulatory landscape and unlock the potential of spot ETFs in the future.
The coming weeks will be crucial for Bitcoin and the broader crypto world, as the SEC’s verdict could significantly impact both sentiment and price dynamics.
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