From a new report from Matrixport has released a new report in which it predicts that the U.S. Securities and Exchange Commission (SEC) will issue another Bitcoin Spot ETFs will reject. This could lead to a possible -20% drop in Bitcoin prices, which could stabilize between $36,000 and $38,000.

Matrixport warns of significant consequences, such as successive liquidations, particularly within the $5.1 billion of additional perpetual long Bitcoin futures. Although many hoped for price increases at adoption of a Bitcoin ETF, Matrixport's insight triggers a discussion about possible price corrections and concerns about attracting short sellers.

Matrix on Target projects a January rejection for Bitcoin Spot ETFs by the SEC, cautioning traders to hedge long exposure. With #SEC Chair Gensler’s skepticism towards #crypto, a potential -20% #Bitcoin price drop is anticipated upon #ETF denial, though a positive end-of-2024… pic.twitter.com/IgaMhBJtiP
— Matrixport (@realMatrixport) January 3, 2024

In addition, approval of a Bitcoin ETF could attract more regulatory oversight throughout the cryptocurrency market, with potential implications for taxes, reporting requirements and use restrictions on Bitcoin.

The SEC's final ruling remains a crucial moment. It will affect the price of Bitcoin in the coming days undoubtedly affect.

Balchunas calls news 'FUD'

Meanwhile, ETF expert Eric Balchunas of Bloomberg contradicted the news. Balchunas contradicted the reports on X.

Looks like the Matrix Report took both the blue pill and the red pill.. https://t.co/1VpA7t2vq6
— Eric Balchunas (@EricBalchunas) January 3, 2024

People tagging me like crazy on this “rejection” report. We have heard nothing to indicate anything but approval but I want to give the guy benefit of doubt so I’m asking if he has any sources or if he just speculating. He seems to be bitcoin bull and recently tweeted… https://t.co/KV7k4NXtba
— Eric Balchunas (@EricBalchunas) January 3, 2024