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Prominent Bitcoin Advocate Issues Warning on Recent Bearish Price Trigger in Crypto Market

Last Updated January 7, 2024 3:12 PM
Teuta Franjkovic
Last Updated January 7, 2024 3:12 PM

Key Takeaways

  • Samson Mow advised traders not to sell their crypto based on recent claims that the SEC may reject Bitcoin ETFs.
  • He believes that the SEC may approve Bitcoin spot ETFs in the near future.
  • The CEO of Jan3 is also cautioning traders against making hasty decisions based on Matrixport’s recent article.

In a recent tweet , Bitcoin advocate and Jan3 CEO Samson Mow advised the cryptocurrency community to hold onto their Bitcoin assets.

This advice comes in the wake of a sudden 7% drop in the value of Bitcoin. The CEO’s cautionary note was specifically in reference to the potential impact of spot Bitcoin ETFs on the market.

Mow Warns Against Matrixport’s BTC ETF Predictions

Samson Mow, the head of Bitcoin tech company Jan3, recently cautioned traders against hastily selling their Bitcoin. 

This warning comes in response to an article published by Matrixport , led by former Bitmain CEO Jihan Wu, which speculated on the potential rejection of Bitcoin spot ETFs by the SEC. 

The article, influencing the market, predicted  that the SEC would deny applications from major players like BlackRock, Ark Invest, Fidelity, Grayscale, and others, citing various reasons. 

It also forecasted a notable drop in Bitcoin’s value, advising traders to short Bitcoin and favor put options over call options. Mow emphasized the importance of not making hasty decisions based solely on such predictions.

The report said :

“If there is any denial by the SEC, we could see cascading liquidations as we expect most of the $5.1 billion in additional perpetual long Bitcoin futures to be unwound. We could see Bitcoin prices declining by -20% very quickly and falling back to the $36,000/$38,000 range.”

Warning Against Bearish Outlook

Matrixport’s article, which influenced recent market reactions, suggested  that Bitcoin ETF issuers could meet all the demands set by the regulatory body by the second quarter of this year. 

This implies that Bitcoin ETFs might receive approval within this timeframe. 

Consequently, Samson Mow is urging the cryptocurrency community to refrain from hastily selling their Bitcoin holdings. His caution stems from the belief that the current possibility of rejection by the regulator should not be a sole determinant for selling, especially in light of the potential for approval in the near future. 

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