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The crypto market on Wednesday sharply corrected down on the basis of rumors that the US stock exchange authorities (SEC) in this round would come to say no or delay the approval of Bitcoin spot-based ETFs. Norwegian crypto analyst Vetle Lunde was interviewed along the way by US media, and stated that the strong price outlooks were due to an “overheated and overleveraged” crypto market. The K33 analyst Lunde has eventually become a renowned analyst who is regularly interviewed by various crypto and financial media.
It was an analyst at Matrixport who early Wednesday went out and predicted that the SEC would not get around to approving any applications to be able to sell Bitcoin spot-based ETFs until later in 1. Quarter. The analyst also predicted that after a no from the SEC, the Bitcoin price would correct down to $36-38,000. Just a few days earlier, the same analyst predicted that an ETF approval would occur in the current week and that the Bitcoin price would rise to $50,000.
After the Bitcoin exchange rate in the first days after the New Year went up sharply, passing 45,000 USD, the report from Matrixport caused cryptocurrencies to fall immediately and steeply. The Bitcoin exchange rate fell by 9.2% to below $41,000, while the knockouts for so-called altcoins were substantially larger. Throughout Wednesday and Thursday morning, prices stabilized, with Bitcoin lying between $42,000 and $43,000.
K33's Senior Analyst Vetle Lunde stated to Coindesk that the market was overheated and overleveraged, making it very vulnerable to the downturn. “Borrowing capital in the market was very high before the crash” (...) “this left the market extremely vulnerable to downward volatility.”
The rapid and steep price blowouts thus led to the liquidation of USD 600 million worth of investments, which had been betting on rates going up further.
In the interview with Coindesk, Lunde conveyed that he still believes in an ETF endorsement now. “Refusal seems highly unlikely based on Grayscale's legal victory, and all communications between the SEC and the issuers,” Lunde said, among other things.
On X (formerly Twitter), which remains the main channel for crypto news, many people poked fun at the fact that the well-known TV personality and financial analyst Jim Kramer in Mad Money the day before the price drop stated that crypto is here to stayAs he said, “This thing, you can't kill it.” After consistently predicting crypto both up and down but with bad timing, many at X consider that Cramer is no bellwether on crypto, but that on the contrary, it might be just as smart to bet against Cramer.
The crypto market on Wednesday sharply corrected down on the basis of rumors that the US stock exchange authorities (SEC) in this round would come to say no or delay the approval of Bitcoin spot-based ETFs. Norwegian crypto analyst Vetle Lunde was interviewed along the way by US media, and stated that the strong price outlooks were due to an “overheated and overleveraged” crypto market. The K33 analyst Lunde has eventually become a renowned analyst who is regularly interviewed by various crypto and financial media.
It was an analyst at Matrixport who early Wednesday went out and predicted that the SEC would not get around to approving any applications to be able to sell Bitcoin spot-based ETFs until later in 1. Quarter. The analyst also predicted that after a no from the SEC, the Bitcoin price would correct down to $36-38,000. Just a few days earlier, the same analyst predicted that an ETF approval would occur in the current week and that the Bitcoin price would rise to $50,000.
After the Bitcoin exchange rate in the first days after the New Year went up sharply, passing 45,000 USD, the report from Matrixport caused cryptocurrencies to fall immediately and steeply. The Bitcoin exchange rate fell by 9.2% to below $41,000, while the knockouts for so-called altcoins were substantially larger. Throughout Wednesday and Thursday morning, prices stabilized, with Bitcoin lying between $42,000 and $43,000.
K33's Senior Analyst Vetle Lunde stated to Coindesk that the market was overheated and overleveraged, making it very vulnerable to the downturn. “Borrowing capital in the market was very high before the crash” (...) “this left the market extremely vulnerable to downward volatility.”
The rapid and steep price blowouts thus led to the liquidation of USD 600 million worth of investments, which had been betting on rates going up further.
In the interview with Coindesk, Lunde conveyed that he still believes in an ETF endorsement now. “Refusal seems highly unlikely based on Grayscale's legal victory, and all communications between the SEC and the issuers,” Lunde said, among other things.
On X (formerly Twitter), which remains the main channel for crypto news, many people poked fun at the fact that the well-known TV personality and financial analyst Jim Kramer in Mad Money the day before the price drop stated that crypto is here to stayAs he said, “This thing, you can't kill it.” After consistently predicting crypto both up and down but with bad timing, many at X consider that Cramer is no bellwether on crypto, but that on the contrary, it might be just as smart to bet against Cramer.
