Why did Bitcoin (BTC) price drop today? This is not a Matrixport report. Here’s the real reason:

Bitcoin suffered a significant 8% plunge on its 15th anniversary, contributing to a nearly 9% decline in the cryptocurrency market. The decline coincided with speculation that the U.S. Securities and Exchange Commission (SEC) may reject spot Bitcoin exchange-traded funds (ETFs). Despite the timing, professional analysts dismissed the plunge as unrelated to fears of ETF rejection.

Approximately $500 million in cryptocurrency long positions was liquidated during this market turmoil. However, leading cryptocurrency analysts including Scott Melker and Joe Carlasare have disputed the narrative that this was a panic-driven sell-off triggered by Matrixport’s report. Instead, they suggested this was a classic market correction and an opportunity for a long squeeze, emphasizing that markets do not move in a straight line.

A report from Matrixport released on Bitcoin’s anniversary speculated that the SEC would reject spot ETFs. It was suggested that such a rejection could undermine Bitcoin’s legitimacy as an alternative store of value. However, this report was criticized for lacking substantive evidence to support its claims.

The SEC’s formal decision period on the ETF issue runs from January 5 to January 10, and anticipation is growing within the cryptocurrency community. Despite the uncertainty, Matrixport’s analysis predicts a moderate decline in the price of Bitcoin if the ETF is rejected. The report estimates that Bitcoin’s value is likely to fall by around 20%, which could push Bitcoin’s value into the $36,000 to $38,000 range.

As the market navigates through these swings and speculative reports, it becomes important to distinguish factual developments from mere speculation. Clarity is expected to come in the coming days as the SEC announces its decision on Bitcoin ETFs.