- Bitcoin crashed briefly after a report predicted SEC would delay approving Bitcoin ETFs, but has since recovered losses as analysts remain confident in imminent approval.
- Yesterday’s flash crash was triggered by Matrixport predicting SEC would reject Bitcoin ETF proposals this month and delay approvals until spring.
- Analysts denounced Matrixport’s prediction, reiterating confidence the first Bitcoin ETF will be approved within days, reassuring the market as Bitcoin price recovers.
Bitcoin has recovered most of the losses from a brief crash yesterday. The flash crash was triggered by a report predicting the SEC would delay approving Bitcoin ETFs. However, most analysts believe an ETF will be approved very soon.
Yesterday’s Crash Sparked By Ominous ETF Prediction
On Wednesday, Matrixport predicted the SEC would reject all Bitcoin ETF proposals this month. Instead, it said approvals would likely start in the spring. Upon this news, Bitcoin immediately dropped 7% in value.
However, analysts closely following the ETF approval process denounced Matrixport’s report. They reiterated confidence that the first Bitcoin ETF will be approved within days.
Market Reassured As Bitcoin Recovers Losses
It appears analysts’ rebuttals reassured the market. Bitcoin has now recovered nearly all of the losses from yesterday’s flash crash.
The price action shows Bitcoin’s fortunes remain deeply tied to ETF approval. An SEC-approved ETF would allow mainstream investors exposure to Bitcoin without holding crypto directly.
ETF Approval Seen As Game-Changer For Bitcoin
Analysts estimate a Bitcoin ETF could expose $14 trillion worth of assets to crypto markets. Eric Risley of Architect Partners said ETF approval would “legitimize” Bitcoin as an asset class.
Hopes around an ETF have fueled Bitcoin’s nearly 65% rally since October. If approved soon, the ETF could provide a further boost. For now, the market remains fixated on SEC approval coming imminently.
