Bitcoin (BTC) Price to Decline in Next 2 Weeks: Matrixport
Matrixport has issued a warning predicting a 7% decline for Bitcoin in the next two weeks, citing that “one of its trading signals” has turned bearish for the first time since August 2023.
This cautionary outlook from Matrixport follows previous statements by the company’s analysts, who anticipate that the U.S. Securities and Exchange Commission (SEC) will reject all spot Bitcoin (BTC) exchange-traded funds (ETFs) in January.
Matrixport Issues Price Drop Warning
In a blog post on January 8, the Singapore-based crypto management firm mentioned that it expects a potential decline in Bitcoin’s price, highlighting the possibility that the ongoing breakout attempt might not be sustained.
Matrixport expressed concerns about the market consensus that the SEC would approve spot Bitcoin exchange-traded funds (ETFs) by January 10.
The paper suggested that smart money could leverage the anticipated approval for profit-taking, adding that although recent market activity had flushed out leverage, the downside risk is expected to be limited. However, the analysis noted that the price range of $36,000 to $38,000 could be retested .
The report pointed out that Bitcoin’s funding rate on crypto exchanges experienced a significant decline from 66.1% to 7.4% in January. It considered this a sign that the largest cryptocurrency by market capitalization might be “technically vulnerable,” especially as the sharp funding increase observed earlier in 2024 was deemed “unsustainable.”
SEC Spot Bitcoin ETF Decision Looms
The recent warning from Matrixport arrived shortly after another report, where the analysts expressed skepticism about SEC Chair Gary Gensler potentially approving spot Bitcoin ETFs.
Matrixport indicated that Gensler’s prior comments suggested a need for stricter compliance in the crypto industry, signaling a reluctance to endorse a spot Bitcoin ETF that could legitimize BTC as an alternative store of value.
The stance drew criticism from Galaxy Digital’s Head of Research, Alex Thorn, who found Matrixport’s report “bewildering” and “nonsensical.”
Following the report, Bitcoin experienced a rapid decline to $41,500, according to CoinGecko data.
High-profile figures in the crypto community, including Will Clemente, attributed the sell-off to Matrixport, emphasizing the market’s sensitivity to rumors and news.
Matrixport’s co-founder, Jihan Wu, later clarified that the company does not influence its analysts’ reports, indicating that the widespread reaction was unexpected.
Meanwhile, the broader crypto community eagerly anticipates the potential approval of spot Bitcoin ETFs. The positive sentiment surrounding the possibility of such a product in the United States has contributed to Bitcoin’s price growth, with the asset surpassing the $45,000 mark in early January for the first time since April 2022.
