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In a recent tweet, vocal Bitcoin supporter and Chief Executive of Jan3 Samson Mow urged the cryptocurrency community not to rush to sell their Bitcoin, even though the leading global cryptocurrency lost nearly 7% yesterday in one instant.
Mow’s warning was related to spot Bitcoin ETFs.
Samson Mow warns traders against selling BTC
Jan3 boss stated that traders should not sell their Bitcoin “just because a prediction article said ETFs will be denied.” Here Mow referred to an article that actually made Bitcoin crash yesterday; it was published by Matrixport, a cryptocurrency startup spearheaded by former Bitmain CEO Jihan Wu.
The article expects the SEC regulator to reject all the filings submitted by Wall Street Bitcoin spot ETF issuers (BlackRock, Ark Invest, Fidelity, Grayscale and about 10 others) in January for a number of reasons. The report also predicted a significant decline in the Bitcoin price, recommending traders to start shorting BTC and buying put options instead of call ones.
The main reason suggested by Matrixport was that all the necessary demands made by the regulator toward Bitcoin ETF issuers can be met by them by the second quarter this year. Then, Bitcoin ETFs may be finally approved, and this is why Mow urges the cryptocurrency community not to dump their Bitcoin holdings now because of a rejection possibility.
$730 million worth of crypto panic-liquidated
The news pushed Bitcoin down, making it shed $3,000 and moving it down to $42,234. By now, Bitcoin has increased, adding 1.33% as it is now changing hands at $42,811. The Bitcoin price collapse caused traders to start liquidating assets — this resulted in a total of $730 million worth of cryptocurrencies liquidated. Mainly, traders have been selling the two largest cryptocurrencies, Bitcoin and Ethereum.
Approximately $169 million worth of Bitcoin and $113 million of Ethereum were liquidated.
Prior to that, when Bitcoin gained momentum and surged above the $45,000 level, a large increase in whales’ activity was noticed. According to crypto analyst Ali Martinez, whales had acquired more than 30,000 Bitcoins, thus providing one of the factors that propelled Bitcoin above $45,000. Now, they have begun to dump their holdings partly, screwing the Bitcoin price back down for fear of losing even more money.
Dan Burgin
U.Today Editorial Team
