Just above the $43,000 mark during Thursday’s European morning session, Bitcoin [BTC] clawed back some ground after tumbling as much as 7% the previous day, a tumble sparked by a leveraged sell-off that rattled markets in response to fresh analyst commentary.
Optimism Surrounds Bitcoin ETF Approval
Lucas Kiely, chief investment officer at wealth platform Yield App, anticipates Bitcoin’s price could soar to near $50,000 later this month. Contrary to bearish forecasts, Kiely remains confident that the U.S. Securities and Exchange Commission (SEC) will greenlight a spot bitcoin exchange-traded fund (ETF), dismissing predictions to the contrary.
Market Movements and Token Performance Snapshot
Early Thursday saw prominent altcoins like Solana [SOL], Ether [ETH], and Cardano’s ADA beginning to regain stability after steep drops exceeding 10% over the prior 24 hours. Meanwhile, the CoinDesk Market Index (CMI), a comprehensive barometer of market sentiment, plunged 6%, marking its sharpest decline in recent weeks.
- Meme tokens Dogecoin [DOGE] and Shiba Inu [SHIB] suffered losses topping 12%.
- Sei Network’s SEI bucked the trend, climbing as buzz around the project intensified.
Liquidations and Open Interest Shifts
Wednesday’s market shakeout triggered liquidations exceeding $600 million — the heftiest in twelve months — while open interest in futures contracts plummeted by $5 billion, the steepest downturn witnessed in recent months.
The crypto market saw a staggering $5 billion hemorrhage in open futures interest, underscoring the volatility rippling through the sector.
Divergent Views on SEC’s Stance
The sell-off that unfolded Wednesday coincided with research from Matrixport forecasting blanket rejections for spot bitcoin ETF applications by the SEC in January. Echoing the bearish mood, options strategist GreeksLive pointed to “fragility in crypto mining equities and sell-offs in various crypto-linked U.S. stocks” as reasons fueling the market’s doubt.
However, Yield App’s Kiely pushed back against this narrative in an email to CoinDesk, urging investors to disregard claims that the SEC won’t grant approval this month.
“I still believe there’s a solid chance the SEC gives the nod in January,” Kiely asserted. “The mounting pressure from the globe’s largest asset managers on Gary Gensler and his approval panel makes continual delays increasingly unlikely.”
Expectations of a sharp sell-the-news reaction don’t hold water, according to Kiely. Instead of plunging to $32,000 as predicted by some, he envisions Bitcoin scaling to $50,000 by month’s end, potentially setting a new annual high for the digital asset.
Contrasting Forecasts and Potential Corrections
Contrary to this bullish outlook, firms like CryptoQuant, which specialize in on-chain data analytics, predict a dip toward $32,000 next month even if a spot ETF gets the green light. Their rationale hinges on traders’ unrealized profits lingering at historically high levels—conditions that frequently precede a correction, which in crypto parlance typically means a downturn of 10% or more.
