Bloodbath If SEC Denies Bitcoin ETF Proposals? Analysts Are Predicting Turbulence For BTC

It Turns Out That If The U.S. SEC Gives Yet Another Red Light On A Spot Bitcoin ETF, The Market May Experience Its Biggest Hurdle To Date

---

As the U.S. Securities and Exchange Commission (SEC) gets closer to making a crucial judgment regarding the approval of a physically-backed Bitcoin exchange-traded fund (ETF), the cryptocurrency community is on edge.

In a recent opinion piece, renowned analyst Nate Geraci forecasted a large market decline if the SEC rejected the ETF. "If spot bitcoin ETF is not approved in January, might be one of the bigger rug pulls in crypto history," he said. Despite this, the analyst continues to believe that there is a very good chance that the SEC will approve such a product.

Despite this, the analyst continues to believe that there is a very good chance that the SEC will approve such a product.

The impending decision, which is anticipated to take place next month, may mark a turning point in the acceptance of cryptocurrencies in conventional finance. An important deadline The price of Bitcoin just enjoyed a significant increase, hitting $45,000 for the first time since 2022 in the cryptocurrency market. The expectation that the SEC will accept the ETF application submitted by 21Shares and Cathie Wood's ARK Investment, among others, is what's driving this growth. An clearance would be a huge help to the cryptocurrency market, which is still getting over the collapse of the FTX exchange in 2022. Giants of Wall Street including Fidelity, Invesco, and BlackRock have joined the fight.

Analysts have optimism. The spot-Bitcoin ETF market has the potential to become a $100 billion industry, according to estimates from Bloomberg Intelligence.

There is a growing narrative about the possible institutionalization of Bitcoin, drawing comparisons to the early 2000s adoption of gold exchange-traded funds (ETFs). The market is still at a turning point. The market is not without its worries, though. Based on data from CoinGecko, Bitcoin is currently trading close to $40,000. The ETFs' rejection by the SEC may cause a large decline. The SEC's decision may either support or undermine the emerging market, putting the industry at a crossroads.

Crypto markets slide into the red

Monday saw a sharp decline in the price of Bitcoin (BTC), which fell below the critical $41,000 threshold. The latest decline follows the U.S. Securities and Exchange Commission's (SEC) ruling to deny Coinbase Global's request for new regulations. Consequently, premarket drops were also observed in key crypto-related stocks.

Over the previous day, the value of the worldwide cryptocurrency market fell by 3.18%. As of right moment, it is $1.54 trillion. However, on the last day, the total volume of the cryptocurrency market increased by 26.95% to $59.71 billion.

Over the past month, Coinbase Global Inc. (NASDAQ: COIN) has had a bull market as the price of COIN has increased by 39.40%. It is currently down 3.73% at $147.90 a share.

Bitcoin still holds on to its supporters in a "Mortal Combat"

Well-known investor and proponent of Bitcoin, Michael Saylor founded the massive business analytics company MicroStrategy. He has used the X/Twitter social media platform to interact with the cryptocurrency community and discuss Bitcoin. Saylor released a graphic that illustrates how the price of several top assets, including Bitcoin, has increased since August 2020, the month that MicroStrategy purchased its initial Bitcoin holding. This figure shows that the leading cryptocurrency has surpassed all others, rising significantly. From August 2020 to December 15 of this year, Bitcoin grew by 253%, whereas gold only showed a 40% increase, with the Nasdaq 100 Index rising by 35% after that. The physical opponent of bitcoin, gold, has not increased, while bonds and silver have decreased by 18% and 14%, respectively.

Source: FactSet

Saylor released the diagram along with the words "Choose Your Fighter," which are reminiscent of several classic fighting games, especially "Mortal Combat." In this environment, it seemed like a bullish message. Since August 2020, MicroStrategy has purchased a significant amount of Bitcoin, indicating that Saylor and the firm have designated Bitcoin as their "fighter."

Bitcoin SEC btc bitcoin news cryptocurrency news crypto news SEC Security and Exchange Commission