This week’s market observation: What caused the Bitcoin price to plummet according to Matrixport’s report?
The overall cryptocurrency market dropped from 45,500 to a low of 40,500 around 6:30 PM on January 3, with a decrease of over 10% within two hours. Other altcoins experienced even more significant declines, and users who did not set stop-loss orders in their contract trades were likely to be liquidated.
After the drop, many people started searching for the reasons behind it, and the blame was pointed towards Matrixport, an investment institution, due to their report released on January 3. The report highlighted the small possibility of the SEC approving a Bitcoin spot ETF, Chairman Gary’s unfriendly attitude towards cryptocurrencies, and political factors such as the Democratic Party.
However, attributing this crash solely to Matrixport’s report is merely a pretext. There are two main reasons for this:
1. Influence of Matrixport’s report:
There are countless investment research reports in the market, and almost every investment institution publishes their own reports. In the cryptocurrency market, there are thousands of investment institutions. Can every report receive significant attention from the market? The author believes that only top-tier investment institutions such as A16Z, Messari, Delphi Digital, and Coinbase Venture can attract great market attention. The influence of Matrixport is debatable.
2. Rigor of the report’s content:
The report is less than 500 words long. While the value of a report is not solely determined by its length, this content seems inadequate for a report. It appears to be more of a condensed result based on the subjective feelings of the analyst.
The market drop is an undeniable fact, but it is fortunate that the decline did not escalate further. Instead, there is a trend of rebound and a reset of the recent high funding rate, which slightly cools down the speculative atmosphere and promotes a healthier development for the market.
Industry Highlights of the Week:
Goldman Sachs may play a crucial role as BlackRock and Grayscale plan to launch a Bitcoin spot ETF in the United States, according to sources familiar with the matter. The bank is reportedly negotiating to become an authorized participant in the exchange-traded fund. This is one of the most important roles in the ETF industry, involving the creation and redemption of ETF shares to ensure the product trades in sync with its underlying assets.
Solana’s monthly NFT trading volume has surpassed Ethereum’s for the first time, reaching approximately $367 million in December, while Ethereum’s NFT sales amounted to $353.2 million. Additionally, Solana saw a doubling in the number of independent buyers and sellers in December, along with a significant increase in the total number of NFT transactions.
Tellor (TRB) experienced a rollercoaster-like volatility in the past 24 hours, with its price going through a price manipulation-like spike and drop. As a result, the cryptocurrency surged to over $600 in 2023 and then fell to $137. During this period, TRB had more liquidation positions than any other cryptocurrency, and in the midst of manipulation rumors, whales exited both long and short positions.
Please note that the views expressed in this opinion article do not represent the stance of “WEB3+.”
Article source: Pionex Industry Weekly Report
Proofread by: Gao Jingyuan