The Securities and Exchange Commission (SEC) will reject all bitcoin spot ETF proposals in January, according to Matrixport analyst Markus Thielen, who defies popular opinion. He based this on enduring worries about compliance and politics.
Thielen emphasizes that the plans continue to fall short of necessary approval standards even with the recent advancements and talks with the SEC. According to Thielen, SEC Chair Gensler is wary of crypto and wants more stringent compliance. "We expect the SEC to reject all proposals in January," the author stated.
According to Thielen, billions of dollars will be taken out of long bitcoin futures and there will be cascading liquidations if the bitcoin spot ETFs are rejected. As a result, this might cause a 20% drop, taking BTC to the $36,000-$38,000 range.
At current prices, Bitcoin's value is still around 5% higher than at the beginning of the year. Even though the SEC's denial might cause some short-term volatility, Thielen is still positive about 2024. Based on past trends in US election years and Bitcoin mining cycles, Matrixport predicts that by year's end, the cryptocurrency will be worth more than $42,000.
