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Promote with Leviathan NewsBitcoin’s roughly 10% intraday drop on 3 January 2024, which took the price from around $45,000 to lows near $40,800, coincided with a widely circulated Matrixport research note warning that the U.S. SEC was likely to reject all pending spot Bitcoin ETF applications in January, reversing the firm’s earlier bullish call. The timing led many market participants to blame the sell-off on that report or on CNBC host Jim Cramer’s prior bullish comments, but derivatives data indicate that an over‑leveraged market was already primed for a sharp “leverage flush,” with the Matrixport note acting, at most, as a trigger rather than a fundamental cause. According to CoinDesk’s reporting, the downturn hit within hours of Matrixport publishing a report by Markus Thielen that abruptly shifted its stance from predicting imminent ETF approval and a move to $50,000 to forecasting across‑the‑board SEC rejections, which sparked concern among traders who had positioned for an approval-driven rally. At the same time, Bitcoin funding rates and futures premiums had climbed to annualized levels above 50%, signaling aggressive long positioning and an overheated derivatives market. K33 Research senior analyst Vetle Lunde described the move as a “typical leverage flush,” arguing that high leverage made the market extremely vulnerable to any negative catalyst and that forced liquidations, rather than a single piece of news or an individual commentator, drove most of the downside. In the aftermath of the drop, Bitcoin recovered part of its losses, trading back near $42,900 later that day but still down roughly 5% over 24 hours, underscoring how quickly leveraged positioning can magnify intraday volatility without necessarily altering the broader fundamental narrative around ETFs or adoption. The episode has been cited as a reminder that in crypto markets, sharp shifts in sentiment—such as a research house reversing its ETF outlook—can interact with elevated leverage and thin liquidity to produce outsized price moves, and that post‑hoc narratives (including attention to Cramer’s stance) often overemphasize individual actors relative to structural market conditions. "entities":["Bitcoin (BTC)","Matrixport","Markus Thielen","K33 Research","Vetle Lunde","U.S. Securities and Exchange Commission (SEC)","spot Bitcoin ETF (exchange-traded fund)","Jim Cramer","CoinDesk"]}'}
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The Block ·
Coindesk ·
The Block ·
𝕏/@asjwebley ·
𝕏/@Blockstream ·
𝕏/@nftechie_ ·
The Block ·
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