Amid Conflicting Reports, Bitcoin Takes a Steep Dive of Over 6% on Matrixport’s Analysis
Matrixport, a leading crypto financial services platform, has generated significant attention in recent days due to the release of two contradicting articles about Bitcoin’s future. The first article, filled with optimism, predicted that Bitcoin could skyrocket to $50,000 in January, primarily driven by the potential approval of Bitcoin spot exchange-traded funds (ETFs). This positive outlook also included hints of a major announcement scheduled for January 8th, 9th, or 10th.
However, Matrixport took an unexpected turn with its second article, titled “Why the SEC will REJECT Bitcoin Spot ETFs again.” Suddenly adopting a bearish perspective, the article highlighted the influence of the current political landscape and SEC Chair Gary Gensler’s cautious approach towards cryptocurrencies. According to the report, such approval would validate Bitcoin as an alternative store of value, a decision Gensler may not be prepared to endorse.
The publication of these divergent articles by Matrixport swiftly impacted the cryptocurrency market, with Bitcoin plunging by more than 6% and falling below the $43,000 mark. This downward trend extended to Ethereum and other altcoins, such as Solana, which experienced a nearly 10% drop. Coinalyze data revealed over $400 million in altcoin liquidations, with long positions suffering the most from this sudden shift.
The conflicting reports from Matrixport sparked intense controversy within the crypto community, with some speculating about the motivations of the platform’s founder, Jihan Wu, a well-known supporter of Bitcoin Cash. This led to suspicions of market manipulation, particularly considering the turbulence that followed the viral articles.
Despite the market downturn, there were still voices of optimism, as some refused to believe that Matrixport solely caused the decline. Mike Alfred, an investor and board member of BTC miner Iris Energy, expressed confidence, stating that “big money isn’t buying this.” Nevertheless, these conflicting reports and their subsequent impact on the market have raised questions about the credibility and intentions of Matrixport.