Markus Thielen, a seasoned analyst from Matrixport, has predicted that The SEC will likely turn down all bitcoin spot ETF proposals this month.
Despite the industry’s high hopes and numerous updates to their applications, Thielen points out a significant shortfall in meeting the SEC’s stringent requirements.
SEC Chair Gensler’s recent remarks add weight to this forecast. His emphasis on compliance and the need to curb fraud in the crypto space suggests a challenging road ahead for these ETFs.
Consequently, Thielen sees the possibility of approval as distant, potentially not until the second quarter of 2024.
Should the SEC follow through with rejections, Thielen warns of a turbulent aftermath. He predicts a sharp 20% drop in Bitcoin’s value, potentially hitting the $36,000 to $38,000 range.
This plunge, he suggests, would stem from the unwinding of billions in long Bitcoin futures.
However, drawing on historical trends linked to U.S. election years and Bitcoin mining cycles, Thielen remains bullish for 2024.
He anticipates Bitcoin’s value to climb back up, surpassing its starting point of $42,000 by the end of the year. This forecast offers hope for long-term investors navigating these regulatory uncertainties.
Also Read: CBOE Predicts Institutional Influx with Bitcoin ETF Approval
