From Bullish To Bearish, Bitcoin Plunges More Than 6% Amid Matrixport’s Contradictory Reports

Samuel Edyme

1 year ago

4 mins read

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Matrixport, a crypto financial services platform, has recently made headlines with the release of two conflicting articles on January 2nd about the future of Bitcoin (BTC). The first publication, radiating optimism, projected that Bitcoin’s price could soar to $50,000 in January, spurred by the potential approval of Bitcoin spot exchange-traded funds (ETFs).

This bullish stance was further grounded by disclosing a possible announcement that could happen on January 8th, 9th, or 10th.

Matrixport’s Sudden Shift: A Bullish Sentiment And Then Bearish Counterpoint

Matrixport’s initial bullish report highlighted the transformative impact a Bitcoin spot ETF approval could have on the crypto market. The anticipated approval is seen as a “pivotal” moment that would “legitimize” Bitcoin in the eyes of institutional investors and potentially unlock a significant influx of capital into the crypto market.

This sentiment echoed the growing optimism within the crypto community, with many stakeholders eagerly awaiting regulatory endorsements that could catalyze Bitcoin’s ascent.

However, in a surprising twist, Matrixport released a second article later the same day titled “Why the SEC will REJECT Bitcoin Spot ETFs again.” This piece presented a starkly bearish perspective, contrasting their earlier optimistic forecast.

The article emphasized the political composition of the US Securities and Exchange Commission (SEC), noting that the current Democratic dominance and Chair Gary Gensler’s cautious stance towards crypto might “diminish the likelihood of a spot ETF approval.”

The report argued that such approval would validate Bitcoin as an alternative store of value, a move Gensler “might not be ready to make.”

The firm noted in the bearish article:

An ETF would certainly enable crypto overall to take off, and based on Gensler’s comments in December 2023, he still sees this industry in need of more stringent compliance. From a political perspective, there is no reason to approve a bitcoin spot ETF that would legitimize Bitcoin as an alternative store of value.

Bitcoin Plunge And Crypto Community Reaction

Matrixport’s bearish outlook had immediate repercussions in the crypto market. Bitcoin experienced a notable decline, shedding around 6% of its value and slipping below the $43,000 mark.

Bitcoin (BTC) price chart on TradingView — Bitcoin’s (BTC) price is moving sideways on the 30-minute chart. Source: BTC/USDT on TradingView.com

This downturn wasn’t isolated to Bitcoin alone; Ethereum and other altcoins also saw significant drops, with Solana plummeting by nearly 10%. Data from Coinalyze indicated over $400 million in altcoin liquidations, with long positions bearing the brunt of this market shift.

Largest total market liq event since the uptrend from 25k began in August.

Largest alts liq event in 2 years.

Brought to you by a Matrixport intern. pic.twitter.com/4z71FbkUfB

— Hsaka (@HsakaTrades) January 3, 2024

The publication of these contrasting articles by Matrixport ignited a wave of controversy within the crypto community. Some observers pointed to Matrixport’s founder, Jihan Wu, a prominent Bitcoin Cash supporter, leading to speculations about the firm’s intentions.

This is the guy who founded Matrixport, a supporter of Bitcoin Cash.

If anyone believes anything that Matrixport publishes, I have a bridge to sell to you. pic.twitter.com/cxaxSOcDx7

— James Van Straten (@jimmyvs24) January 3, 2024

This revelation sparked heated discussion, with many saying that Matrixport’s actions were driven by market manipulation motives, especially in light of the market turbulence that followed the viral articles.

Despite the current market condition, as always, some are still bullish, while some even refuse to believe MatrixPort was the cause of this market downturn. Mike Alfred, an investor serving as a board member of BTC miner Iris Energy, already shared his bullish take, noting, “Big money isn’t buying this.”

Top tier Bitcoin miners have shaken off the Matrixport market manipulation and have gone green or moved back towards breakeven. Big money isn’t buying this.

— Mike Alfred (@mikealfred) January 3, 2024

Featured image from Unsplash, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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