As a result of the sharp drop in the price of bitcoin, the virtual currency market was bled and several mainstream virtual currency prices suffered a major setback. At 2120 hours, the eta fell by over 7 per cent, the rmb by over 12 per cent and the dog currency by over 10 per cent。
The chinese securities journalist noted that market investors were more divided about the subsequent movement of bitcoin. It was pointed out that the expectation that the real bitcoin etf would be approved in the united states in recent days, combined with the expected rise in interest rate reductions by the united states federal reserve, had stimulated investors ' investment in the virtual currency market and had contributed to the previous surge in bitcoin prices. The sharp drop may have been due to the recent surge in prices and the tendency of investors to settle the profit。
Data released by chain analyst ali on social platforms show that, over the past 10 days, bitcoin miners have sold some 4,000 bitcoins, with a total value of over $176 million。
According to the source, on 3 january, local time, the matrixport study indicated that since none of the spot etf applications in bitcoin met one of the key requirements, the sec (united states securities and exchange commission) was expected to reject all applications in january. At present, it is unlikely that the sec voting committee will approve the spot of the bitcoin etf, which would legalize the bitcoin。
Senior bitcoin researcher hong junin said to the chinese securities journalist that the research published by matrixport anticipated a massive liquidation in the market if the sec refused to approve, which would bring the price of bitcoin to between $36,000 and $38,000. The market was affected by this news, causing panic sales. However, major adjustments are likely to take place before official sec messages come to light and investors should be aware of risks。
A lot of speculators tend to profit
Bitcoin prices have continued to rise since the second half of 2023, with cumulative increases of over 145 per cent in 2023. The total market value of the virtual currency has grown rapidly, influenced by the overall upward trend. According to coingecko, the total market value of the virtual currency is now close to $1. 5 trillion (approximately rmb 10. 7 trillion)。
Despite the heavy losses incurred by many investors as a result of the dive, dobitcoin still accounts for more investors. According to coinglass, in the last three months, investors'stock ratio has shown a tendency to increase and slow down, still above the 1. 25 level, with a ratio of 1. 09 to 1. 09。
Ayyar, vice-president of international markets of the virtual currency trading platform coindcx, stated that the increase in the current round of bitcoin was largely based on the expectation that the spot etf in bitcoin would be approved. If the real bitcoin etf is again rejected by united states regulators, the current round's increase in bitcoin is likely to come to an end and to be reversed. As a result, a number of speculators are now inclined to settle their profits and the virtual currency market is falling back。
Bitcoin spot etf application history
Bitcoin cash etf applications in the united states were traveled from 2013 to 2013 by the rich winklevos twins. However, it was repeatedly rejected by the sec, mainly because of concerns that investors in the bitcoin market were at greater risk。
Since last year, several financial institutions, such as belet, have submitted spot-on etf applications in bitcoin, which have raised market concerns. According to incomplete statistics, at present, 13 applicant agencies have held 24 meetings with the sec to discuss the details of the spot etf in bitcoin。
Recently, eric balchunas, a bloomberg etf analyst, said: “if we do not see the adoption of the spot bitcoin etf in the next two weeks, it may be because the sec wants more time to resolve the matter.”
