Bitcoin drops below $45K after Matrixport report on BTC ETF approval

Crypto market overview: The cryptocurrency market experienced a decline of 5.8 per cent in the last 24 hours after a Matrixport report on Bitcoin spot ETF approval went viral. In the report, analysts claimed that the US Securities and Exchange Commission is likely to reject any of the Bitcoin ETF filings. However, soon after the report was leaked, Jihan Wu, founder, of Matrixoprt clarified that the report was prepared by independent analysts and was not intended for widespread consumption. 

Due to high anticipation around Bitcoin ETFs, the effect on the market was evident. Almost all of the leading cryptocurrencies faced a major decline with Bitcoin falling below $45,000 levels while on the other hand, MATIC fell by more than 12 per cent in the last 24 hours. 

While the crypto fear and greed index remains positive, it has dropped by two points compared to yesterday.

However, the CoinDCX research team shared its apprehensions about on the cause of this market dip. CoinDCX said, “The cause of this decline remains uncertain, with some speculating about a report on BTC spot ETF denial from Matrixport, although this information may not be true. From a technical standpoint, BTC is still maintaining a position above the 20EMA Daily and is slightly above $43,000.” 

“Key support to monitor is at $42,000, while a crucial resistance level stands at $44,400. While ETH is now situated below the 20EMA Daily. The key support level is at $2,130, and a significant resistance level is observed at $2,380,” said CoinDCX. 

Shivam Thakral, CEO, BuyUcoin also voiced Matrixport’s ETF report as the reason behind the recent market decline. Thakral said, “The overall crypto market cap dipped by 5 per cent to the $1.65 trillion mark as Bitcoin slipped to the $43,000 level due to spot ETF fears. The report from Matrixport suggested that the SEC will reject the spot Bitcoin ETF application. The news had an immediate impact and the majority of crypto assets slipped in red including Bitcoin and Ethereum. The market is expected to remain volatile in the coming weeks till there is some clarity on ETF approval.” 

Outlook remains bullish

Edul Patel,CEO, Mudrex said, “Despite hitting a low below $41,500, Bitcoin promptly recovered and is currently trading at the $43,000 level. Ethereum and the majority of altcoins also experienced a decline in the last 24 hours. Bitcoin's support is now established at the $43,150 level, with resistance at $43,600.”

CoinSwitch markets desk said, “Since BTC did not go below $40,000 - the overall structure of BTC still looks bullish. This correction can be attributed to the circulating rumours that the SEC is going to reject the anticipated ETF. While the total liquidations of yesterday remained at more than half a billion dollars, total crypto exchange volumes crossed 1 trillion dollars after 2 years, which shows that big money has started to flow back into the crypto market.” 

Sharing the technical details of the crypto market, Vikram Subburaj, CEO, Giottus said, “As BTC consolidates in the $42,400 to $43,00 range, altcoins can rally back to their previous levels in the short term. BNB is the lone ranger to hold its price today, while Ethereum, Solana and others have shed by more than 6 per cent. The short-term upside targets for key altcoins are Ethereum ($2,275), BNB ($325), and Solana ($105).”