BITCOIN slumped today in the early afternoon, painting a daily low just slightly above $40,000 mark. A report from Matrixport suggesting that SEC will reject all Bitcoin spot ETF applications in January and not issue final approval of the vehicle until Q2 2024 was named as the reason behind the drop. However, this was a somewhat dubious explanation given that the move on BITCOIN market occurred significantly after Matrixport release, and that Matrixport news was an opinion-piece rather than reporting based on insider information. Markets seem to have realized it as more than half of today's plunge was already erased.
Recovery move was supported by a tweet from Fox News reporter, who said that SEC will hold meetings today with exchanges - Nasdaq, CBOE and NYSE - to finalize comments on submitted Bitcoin spot ETF applications. This means that, contrary to Matrixport report, approval for Bitcoin spot ETF in January 2024 is still a possibility.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appTaking a look at BITCOIN at H1 interval, we can see that price managed to climb back above the 200-hour moving average (purple line) as well as 50% retracement of today's plunge. BITCOIN tested 61.8% retracement in the $43,400 area following Fox News reported tweet, but bulls failed to break above it. BITCOIN continues to trade around 4% lower on the day but also almost 8% above daily lows.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
