Jannat Ara

Spot Bitcoin ETF Approval Forecasts Delay, Heightens Market Speculation

Speculations around the SEC’s decision on spot Bitcoin (BTC) ETFs continue to fuel market anticipation, with analysts from Greekslive projecting a timeline extending beyond January 7 for an SEC verdict.

Options trading analysts at Greekslive suggested a potential delay until at least January 10 for the SEC’s decision on spot Bitcoin ETFs. They referenced stock price movements of American crypto mining operations and digital asset-related companies, signaling uncertainty about the timing of the SEC’s stand on ETF approvals.

The current market sentiment appears bearish, evident from reduced prices of current month puts and active put buying in block trades. These indicators suggest that institutional investors are displaying a lack of bullish sentiment in the ETF market, as noted by Greekslive.

The crypto market is on edge due to 14 spot Bitcoin ETF applications submitted by established TradFi entities like BlackRock and crypto-native organizations like Hashdex. While there’s optimism following recent meetings and updated filings, historical rejections by the SEC persist in the background.

Despite expectations, opinions among industry leaders vary. Some believe the SEC might further postpone the decision on spot Bitcoin ETFs beyond January, anticipating potential rejections. Matrixport, in particular, forecasts a rejection of all bids for a fund investing in Bitcoin at spot prices, potentially leading to legal challenges against the SEC based on past rulings, according to crypto.news.

Following Matrixport’s report, BTC saw a significant 7% drop, slipping below $43,000 and triggering over half a billion in liquidations across crypto markets within a four-hour period.

Although Matrixport anticipates a potential decline to $36,000 in Bitcoin’s value, they forecast a bullish trend in January. Their analysts predict a surge to at least $50,000 before February, with a projected new all-time high surpassing $125,000 by year-end. The market remains volatile, with expectations and uncertainty prevailing around the imminent SEC decision.

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