Crypto Twitter This Week: The ETF Craze Will Never End

adminJanuary 7, 2024

Crypto Twitter This Week — Illustration by Mitchell Preffer for Decrypt

The ETF craze has taken over the cryptocurrency industry and is now dominating the market and discourse, and it looks like it won’t stop until there’s a ruling.

This week on Crypto Twitter, feverish speculation about the already eagerly anticipated financial product reached new highs as rumors and predictions shook minds and cryptocurrency prices alike.

A major shock to the system came on Wednesday. ominous report Digital asset manager Matrixport predicted that the Securities and Exchange Commission (SEC) would reject all spot Bitcoin ETF applications in January.

MatrixPort, a company they’ve never heard of, comes along and (in their opinion) takes over. #Bitcoin The ETF is unlikely to receive SEC approval this month.
They are one company. They might be right. They may be wrong.
The report triggered a sell-off. #Bitcoin This morning. pic.twitter.com/K8UMifAsOY
— Caleb Franzen (@CalebFranzen) January 3, 2024

Almost immediately, BTC plummeted, falling more than 7% in a matter of hours and falling below $42,000. Clearly, the Bitcoin market is breathlessly hanging on to any signal regarding the ETF’s prospects, and not without reason. Financial products that allow traditional financial institutions and investors to gain exposure to BTC without holding cryptocurrency $14 trillion worth Transforming the American Economy with Bitcoin.

But experts were quick to hit back at the Matrixport paper, accusing it of being based on inadequate sources and faulty analysis. These analysts remain overwhelmingly confident that a Bitcoin ETF will be approved this month.

At this point, the SEC’s refusal to do so is not simply opposition. @JSeyff And I love that it was early on. Now you’re basically saying that several mainstream news reporters with multiple sources inside this are also wrong. That’s not to say it’s impossible (again, we still have to…
— Eric Balchunas (@EricBalchunas) January 3, 2024

BTC, calmed down by that confidence, quickly rebound Matrixport returns to previous level.

“Sir, I have the Matrixport report. #Bitcoin Temporarily reduced by $5,000. Now it’s back to $43,000.”
“Okay, so what’s next? Approval is imminent so it has to go lower!”
“Next sir? We expected a much bigger drop, but the hodlers were not easily spooked. In fact, they bought more.” pic.twitter.com/kfnWvyLLU3
— EricOfRivia⚡️ (@EricOfRivia) January 3, 2024

Perhaps desperate for relief from all the chaos and all the twists and turns, many cryptocurrency Twitter users yesterday began obsessing over a rumor that the SEC is expected to approve the first Bitcoin ETF on Friday.

I’m looking forward to something tomorrow
— Jacqueline Melinek (@jacqmelinek) January 4, 2024

I’m going to sleep. When I wake up in the morning, I hope my spot Bitcoin ETF gets approved.
— borovik.eth (@3orovik) January 5, 2024

But alas, rest never came. Despite all the hopeful Bitcoin ETF applicants submitting their revised applications, the SEC had nothing to announce and, much to the disappointment of many in crypto, we were left with another weekend of extreme uncertainty.