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- Markus Thielen expressed concerns about the current state of the Bitcoin market.
- Matrixport expected a strong rally in 2023’s fourth quarter; however, by mid-December, warned about a consolidation in prices.
- One of Matrixport’s trading models indicated a bearish signal for Bitcoin for the first time since August.
Markus Thielen from Matrixport expressed concerns about the current state of the Bitcoin market, particularly concerning the U.S. Securities and Exchange Commission’s (SEC) decision on a Bitcoin ETF.
Matrixport, one of the world’s largest digital asset platforms, shared a recent interview between Thielen and CoinDesk Podcast, highlighting Bitcoin’s recent price movements as the market anticipates the Bitcoin ETF approval decision.
According to the notification, Matrixport issued a client-only research note on January 3. It highlighted an opportunity to insure portfolios for 1.6% using put options over the next ten days.
Initially, Matrixport expected a strong rally in the fourth quarter (Q4) of 2023. However, by mid-December, they warned about a consolidation in prices. The firm maintained a positive outlook for the new year, but the outlook turned bearish on January 3, with one of their trading models indicating a bearish signal for Bitcoin for the first time since August.
Together with the weakness in the stock market, we reversed course and expected the weakness to impact Bitcoin, too.
Thielen claimed that the shift in outlook was influenced by the weakness observed in the stock market. Moreover, he noted that positioning in the market was overextended, with the funding rate at multi-year highs and open interest significantly elevated.
This situation made profit-taking more likely, according to Thielen.Thielen recently predicted that drastic consequences could occur should the SEC follow through with a rejection. He expected a save of liquidations in the perpetual long Bitcoin futures market, potentially triggering a 20% price drop and pushing Bitcoin back down to $36,000 – $38,000.
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