Matrixport Predicts Bitcoin Price Drop Due to Potential ETF Rejection

Share on Facebook Share on Twitter

Bitcoin Spot ETF Rejection Could Favour Short Positions

The price of Bitcoin (BTC) could drop to $38,000 or even $36,000 if the U.S. Securities and Exchange Commission (SEC) does not approve an ETF in January. This is according to a report by crypto services firm Matrixport, which had previously predicted that Bitcoin would reach the $50,000 mark by the end of January 2024. Now, the company has revised its forecast.

Why Matrixport is Changing its Forecast

Matrixport attributes the change in its forecast to the potential rejection of a Bitcoin Spot ETF by the SEC. Although there have been frequent meetings between the ETF applicants and SEC staff, Matrixport believes that all applications are missing a critical requirement that must be met before the SEC can grant approval.

The Impact of a Rejection

If the SEC does not approve any of the applications by January 5, all applications would be rejected. The first approval could then only occur in the second quarter of 2024. If there is a rejection by the SEC, it could trigger a chain reaction of liquidations. Matrixport expects most of the additional $5.1 billion in permanent long positions for Bitcoin futures to be settled. This could cause Bitcoin prices to drop very quickly by 20% and fall back to the range of $36,000 to $38,000.

alert-circle
You can also find us on Telegram: Click here to follow our Telegram channel.

Short Positions Could Benefit

Based on this forecast, AMBCrypto has reviewed the long/short ratio of Bitcoin. Data from Coinglass suggests that traders are already giving up hope of a positive ETF decision. At the time of publication, the long/short ratio had dropped to 0.97%. If the value is above 1, it means that there are more open long positions than short positions. However, since the ratio is below 1, most traders are bearish about the BTC price development.

The Outlook for Bitcoin

Despite the potential rejection of the ETF in January, Matrixport expects the Bitcoin price to be higher at the end of 2024 than at the beginning of the year ($42,000). The company justifies this by saying that U.S. election years and Bitcoin mining years are typically positive.

Sources: Matrixport, AMBCrypto, Coinglass, Hyblock Capital

Share on Facebook Share on Twitter

The 3 best cryptocasinos

Up to 1 BTC + 100 Free Spins
First Deposit Bonus
9.9
/ 10
Very good
Play now

T&Cs Apply, 18+

Bets.io review
Cryptocurrencies (12)
  • Bitcoin Logo
  • Ethereum Logo
  • Litecoin Casino
  • usd-coin-logo
Bets.io review

Bonus information

Bonus code: BETSFTD
Wagering requirements: 40x the bonus amount
40x the winnings from free spins
Minimum deposit: 20 USDT or equivalent
Bonus validity: 14 days
  • Maximum bet per round while wagering: 2 USDT – 0.000066 BTC , 0.01 BCH, 0.0011 ETH, 0.02 LTC, 40 DOGE, 2.8 XRP, 25 TRX, 6.6 ADA, 0.008 BNB, 2 BUSD, 2 DAI, 2 EUR – 2 USD.
  • Bonus must be used within 30 days of registration.
Why we like this casino

Bets.io is an impressive crypto casino that boasts a variety of games and renowned software providers. The website is easy to use and offers a wide selection of games, which makes the gaming experience particularly enjoyable. Furthermore, the customer service is available 24/7. They are highly competent, ensuring a reliable and trustworthy service.

Last update by Isabella Brown (iGaming expert for > 10 years) on 19. February 2024
Curaçao
Licence
100% up to 1 BTC
Welcome Bonus
9.9
/ 10
Very good
Play now

T&Cs Apply, 18+

Metaspins review
Cryptocurrencies (9)
  • Bitcoin Logo
  • Ethereum Logo
  • Litecoin Casino
  • usd-coin-logo
Metaspins review

Bonus information

Wagering requirements: 25x deposit & bonus
Minimum deposit: 0,1 mBTC
Bonus validity period: 7 days
  • Bonus & deposit must be wagered 25x
  • Max amounts: 1 BTC/10 ETH/10,000 USDT/10,000 USDC/100 BCH/200,000 TRX/35,000 ADA/150 LTC/125,000 DOGE
  • 7 days to wager
  • Minimum deposit: 0.1 mBTC
  • Slots 100%, game shows 50%, other 0%
Why we like this casino

Metaspins is still a very young crypto casino, but it can already convince with a very modern website, a good selection of games and, above all, an excellent bonus.

Isabella Brown
Last update: 19. February 2024
100% up to 1 BTC + 100 Free Spins
Welcome bonus
9.9
/ 10
Very good
Play now

T&Cs Apply, 18+

Empire.io review
Cryptocurrencies (9)
  • Bitcoin Logo
  • Ethereum Logo
  • Litecoin Casino
Empire.io review

Bonus information

Bonus Code KC100
Wagering requirements Bonus must be wagered 40x
Winnings from free spins must be wagered 40x
Minimum deposit 30 USDT or equivalent
Maximum bet €5 per round
Bonus currency Only with BTC and USDT deposit
  • The free spins are given on Sweet Bonanza.
  • VERY IMPORTANT: The bonus is only available when depositing with these methods: BTC & USDT.
  • To take advantage of the offer, change your wallet to mBTC (μBTC) or USDT and activate the bonus by clicking on “Redeem Bonus” and entering the bonus code.
  • Only the first deposit counts for the bonus.
Why we like this casino

We absolutely recommend Empire.io since it has one of the best crypto teams we know behind it. On top of that, it offers an extensive selection of slots and live games. The bonus is also exceptional with good conditions.

Last update by Isabella Brown (Nerd of Numbers) on 23. February 2024
Curaçao
Licence

Latest News

Paula Winkler

Created by

After over 6 years in print journalism, I stumbled into the iGaming niche in 2017. One thing became evident to me quickly: Online Casino Reviews need more transparency! I joined the Kryptocasinos.com Team in 2023 and are the main expert for all topics related to „Player Security“.
In my private life, I am an active member of the volunteer fire department and enjoy the outdoors with my dog Ruby.
Reviewed by
Nerd of Numbers

Last update: 19. February 2024

🍪
We use cookies. By using this site, you accept them.