Crypto market volatility: A certain institution's controversial report sparks discussion

Recently, a well-known encryption financial services institution released a controversial report predicting that the U.S. Securities and Exchange Commission will reject all Bitcoin spot ETF applications in January and suggested that the Bitcoin price could drop to the range of $36,000 to $38,000. The report also advised investors to consider buying put options or directly shorting Bitcoin.

Once this report was released, it immediately caused a stir in the domestic and international crypto market media circles. There are reports that even employees of the organization shared the contents of this report on social media.

Due to this news, the crypto market experienced severe volatility. The price of Bitcoin plummeted from a high of $45,000 to around $40,000, evaporating $5,000 in a short period. According to a certain data platform, within 4 hours after the report was released, the total liquidation amount across the network reached $531 million, with long positions liquidating $496 million and short positions liquidating $35.3799 million. Major cryptocurrencies such as Bitcoin, Ethereum, and Solana were all severely impacted.

However, some industry experts have raised questions about the content and motives of the report. Bloomberg analyst Eric Balchunas, who has long been following the progress of Bitcoin ETFs, stated on social media that he has seen no signs indicating that the ETF would be rejected, and instead believes that the probability of approval is as high as 90%. He also pointed out that if the regulators intended to reject or delay the decision, they would not hold meetings with major exchanges to discuss the details of the ETF issuance.

It is worth noting that the agency had previously maintained a positive attitude and even predicted that the ETF would be approved. This sudden change in position has caused confusion and speculation in the market. Some analysts believe that this behavior is similar to research institutions that have specifically shorted US-listed Chinese stocks in the past, and may be intended to create panic in the market, thereby affecting price trends.

In response, the co-founder of the organization stated that analysts operate independently and that the report's views are not subject to management interference. He also mentioned that the report was originally intended for VIP clients and was not planned for widespread media dissemination.

However, this explanation still raises many doubts. First, as a professional encryption financial service institution, is it appropriate to allow analysts to release important reports that may affect the market without authorization? Second, given the generally optimistic outlook in the current market, is it in the best interest of clients to issue short-selling recommendations to VIP clients? Finally, if the report is indeed intended only for internal use, why did it quickly spread widely across major media platforms?

Regardless, this incident once again highlights the volatility of the crypto market and the sensitivity of information dissemination. Investors need to remain calm and rational when faced with various market news, carefully assessing the reliability of information sources and their potential motives. At the same time, regulatory agencies should also pay attention to possible malicious manipulation behaviors in the market to maintain market order and protect investors' interests.

This article is for reference only and does not constitute any investment advice. When making investment decisions, please be sure to conduct thorough research and risk assessment.