Bitcoin Price Dips Over Fears of ETF Rejection: A Closer Look

• Bitcoin Price Declines Amid Speculation of ETF Denial
• Reactions from ETF Applicants Galaxy and Invesco
• Anticipation of Spot Bitcoin ETF Approval
• Detailed Analysis of the Situation
• Thielen's Remarks on SEC Chair Gary Gensler
• Impact on the Digital Asset Sector
• Bitcoin's 15th Anniversary

Bitcoin Price Declines Amid Speculation of ETF Denial

Bitcoin$42,260 -0.64% (BTC) has experienced a significant drop in price, with a sharp 10% decline in the last 24 hours alone. This downward trend has been triggered by speculation that the proposed Bitcoin ETF might face rejection. These predictions come from Matrixport analyst Markus Thielen, who suggests a likely denial of the investment product by the US Securities and Exchange Commission (SEC). Thielen's assessment indicates that all Spot Bitcoin ETF applicants will not meet the crucial requirements necessary for SEC approval.

Reactions from ETF Applicants Galaxy and Invesco

In response to the unfolding situation, Spot Bitcoin ETF applicants Galaxy and Invesco have released a video celebrating Bitcoin's anniversary. The video release followed the news of the potential ETF rejection.

Anticipation of Spot Bitcoin ETF Approval

In the last few months, the digital asset sector has been highly concentrated on the potential approval of a Spot Bitcoin ETF. With more than a dozen applications submitted, optimism has been high. The general expectation was that an approval would be granted within the following week. However, this certainty has waned over the past week.

Detailed Analysis of the Situation

Bitcoin started the year above $45,000 for the first time since 2022. However, its price has since dropped due to rumors of an ETF denial. Specifically, Matrixport's Markus Thielen's latest report draws attention to the potential for widespread denials. This possibility is based on the SEC's historical response and its current leadership.

Thielen's Remarks on SEC Chair Gary Gensler

Thielen stated, SEC Chair Gary Gensler is not embracing crypto in the US, and it might even be a very long shot to expect that he would vote to approve Bitcoin spot ETFs. This might be fulfilled by Q2 2024, but we expect the SEC to reject all proposals in January. Thielen's views contrast with the broader market perception, but they have undeniably affected Bitcoin's price.

Impact on the Digital Asset Sector

The speculation concerning ETF rejection has not only affected Bitcoin but has also led to a drop in prices across the entire digital asset sector. As of now, these are mere speculations, with no official decision due until the end of this week.

Bitcoin's 15th Anniversary

In the midst of this scenario, ETF applicants Galaxy and Invesco released a video acknowledging Bitcoin's 15th anniversary. The release of the video followed the news of the potential ETF rejection.

Edited by Jonathan Stoker