US Stock Market Starts Off Poorly in 2024, Fails to Continue the Strong Rally at the End of Last Year, with All Major Indexes Closing in the Red Yesterday. As for Bitcoin, although it briefly surged on the first working day of January 2nd, market confidence was weak. Yesterday, trading institution Matrixport released a report stating that the SEC will reject all Bitcoin spot ETF proposals in January. Bitcoin briefly fell to 40,750, and other cryptocurrencies also declined. According to Coinglass data, there were 680 million US dollars in positions liquidated in the past 24 hours, and the bulls suffered heavy losses.
(
Matrixport Analyst: ETF Expected to Be Rejected in January, Bitcoin Falls to 36K~38K
)
Federal Reserve Remains Hawkish, US Stocks Decline Across the Board
Approval Deadline for Bitcoin Spot ETF Approaches, Cryptocurrency Market on Edge
Bloomberg Analyst Eric Balchunas Refutes Claims
The Federal Reserve released the minutes of its December meeting last night, indicating that interest rates could reach a high point and may need to be lowered in 2024 in light of recent inflationary pressures. However, meeting participants noted that there was “unusually high uncertainty” regarding the prospect of rate cuts, and the possibility of further rate hikes still exists. This also highlights the uncertainty surrounding the timing of potential rate cuts.
Advertisement – Continue Reading Below
US stocks started off poorly in 2024, failing to continue the strong rally at the end of last year. The Dow fell nearly 300 points, Nasdaq plummeted 1.18%, marking the fourth consecutive trading day of decline, and the S&P 500 closed down 0.8%, the first decline in the first two days of the year since 2015.
The market will closely monitor the non-farm payroll report on Friday.
Yesterday, trading institution Matrixport released a report stating that the SEC will reject all Bitcoin spot ETF proposals in January, and Bitcoin is expected to correct to 36K~38K. In the tense situation in the market, BTC briefly fell to 40,750, and ETH also briefly reached $2,100. Cryptocurrencies declined in unison. According to Coinglass data, there were 680 million US dollars in positions liquidated in the past 24 hours, with the bulls suffering losses of 590 million US dollars.
Bloomberg ETF analyst Eric Balchunas, who has been widely mentioned, also came forward to clarify: “We haven’t seen any signs other than approval.” He also responded to a tweet from Fox Business reporter Eleanor Terrett, who said, “The SEC is still meeting with several major exchanges today to discuss the submission documents of these spot ETF issuers.” Balchunas believes that if the SEC intends to reject or delay, he would not do such a thing (referring to the meeting). He also pointed out that the SEC has been in discussions with the issuers to make the 19b-4 documents more complete, indicating that approval is imminent. This is not like the constant resubmissions of the issuers’ S-1 documents.
Note: 19b-4 is the document submitted by the exchange, while S-1 is submitted by ETF issuers such as BlackRock.
Matrixport co-founder Wu Jihan also responded to people’s doubts, stating: “The analyst operates independently, and the approval of the ETF is inevitable.”
(
Matrixport Co-founder Wu Jihan Responds: Analyst Operates Independently, ETF Approval is Inevitable
)
BTC
Eric Balchunas
Matrixport
Bitcoin Spot ETF