In a sharp reversal from yesterday's sudden drop, the price of bitcoin (btc) has recovered, surpassing the $43,000 mark. This surge comes after intense volatility yesterday, where the cryptocurrency giant witnessed a sudden drop of over 11% following a controversial Matrixport report.
The report suggested a possible rejection by the US Securities and Exchange Commission (SEC) of the long-awaited spot exchange-traded funds (ETFs), triggering the second-largest liquidation of long positions in the last year. The price of bitcoin plummeted to $41,500.
However, bitcoin is stabilizing above $43,000 today, influenced by a combination of factors. In particular, several experts have questioned the validity of the Matrixport report. Adding to the positive sentiment, a major SEC-related update has caught the market's attention.
bitcoin ETF tomorrow?
According to a bitcoin-etf-approval” target=”_blank” rel=”nofollow”>report According to Fox Business, SEC lawyers from the Division of Trading and Markets participated in crucial discussions with representatives of major exchanges such as the New York Stock Exchange, Nasdaq and the Chicago Board Options Exchange on Wednesday. This commitment is important when it comes to the approval of several bitcoin ETF applications.
The meetings are seen as a positive sign that the SEC is close to approving some or all of the dozen applications from major money managers and crypto companies for the product. An anonymous source familiar with these developments stated: “While no final decision has been made, sources close to the process say the SEC could begin notifying issuers of approval as early as Friday and trading will begin next week.”
James Seyffart, Bloomberg ETF Analyst commented on Eleanor Terrett's report from Fox Business via X, stating: “My view is in line with Eleanor Terrett's report. I think the SEC might start telling issuers to wait for approvals, although I still expect official approvals on January 8-10. I also believe that the gap between approval orders and actual operations will be measured in days, not weeks.”
Echoing Seyffart's views, Eric Balchunas, his colleague at Bloomberg, commented, “Things you probably won't do if you're going to deny or delay them. Hear something similar, by the way, and why, as we see the arrival of the updated (final) 19b-4s, signature approval is imminent, as the SEC has been going back and forth with issuers offline to refine its 19b-4 instead of making numerous S-1 style filings. .”
Davis Polk Financial Attorney Scott Johnson heavy on on Balchunas' statement: “In every previous wave of ETFs, the SEC did not do this. Because? Because (1) this eats up a ton of SEC resources and (2) it makes it MUCH harder to successfully survive judicial scrutiny (and after Grayscale, this is like getting blood from a stone). If you want to deny it, just deny it.”
btc price remains ultra bullish
In light of these developments, the cryptocurrency market remains cautiously optimistic, with indicators pointing strongly towards the approval of an ETF before January 10, potentially even as early as January 5. Notably, bitcoin price has closed its daily candle within the uptrend channel, established in mid-October. At the time of publication, btc was trading at $43,102.
Featured image from Shutterstock chart from TradingView.com
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