Market Fluctuation Before Bitcoin Spot ETF Approval

Recently, a report regarding the potential rejection of Bitcoin Spot ETF has sparked strong reactions in the cryptocurrency market. This report, released by a certain cryptocurrency asset service company, predicts that the U.S. Securities and Exchange Commission will reject all Bitcoin Spot ETF applications in January and suggests that the price of Bitcoin may fall within the range of $36,000 to $38,000. The report even advises investors to consider shorting Bitcoin.

The rapid spread of this report has caused panic in the market. The price of Bitcoin plummeted sharply from a high of $45,000 to around $40,000, dropping $5,000 in a short period. According to data platforms, the total liquidation amount across the network reached $531 million within 4 hours of the report's release, with long positions accounting for the vast majority.

However, the credibility of this report was quickly questioned. Eric Balchunas, an analyst at Bloomberg who has been closely following the progress of the Bitcoin spot ETF approval, stated that he has not seen any signs of ETF applications being rejected. Balchunas believes that if regulatory agencies intended to postpone or reject the decision, they would not hold meetings with major exchanges to discuss the details of ETF issuance. He had previously predicted a 90% chance that the Bitcoin spot ETF would be approved before January 10.

Some industry insiders have likened this report to research institutions in the past that focused on shorting Chinese concept stocks. These short-selling institutions often influence market sentiment and stock price movements by releasing impactful reports. However, regulatory bodies have begun to pay attention to the market manipulation risks that such behaviors may bring.

It is worth noting that the company's founder subsequently responded to the content of the report. He stated that the company's analysts operate independently, expressing their own views without being influenced by management. He also mentioned that this report was originally prepared for VIP clients only, and its wide dissemination was not planned by the company.

However, this explanation has also raised some questions. Some believe that as a professional cryptocurrency asset service company, it seems unreasonable to allow analysts to freely publish reports that could affect the market. At the same time, in the current market where Bitcoin's prospects are generally optimistic, providing short-selling advice to VIP clients is also perplexing. Moreover, the rapid dissemination of the report has led people to question whether its original intention is truly as stated.

Regardless, this event once again highlights the sensitivity and fluctuation of the cryptocurrency market. As the Bitcoin Spot ETF is about to face a crucial approval moment, investors need to remain rational and treat various market information with caution.