In a recent tweetSamson Mow, a vocal Bitcoin supporter and CEO of Jan3, urged the cryptocurrency community not to rush into selling their Bitcoin, even though the world’s leading cryptocurrency lost almost 7% yesterday in an instant.
In a recent tweetSamson Mow, a vocal Bitcoin supporter and CEO of Jan3, urged the cryptocurrency community not to rush into selling their Bitcoin, even though the world’s leading cryptocurrency lost almost 7% yesterday in an instant.
Mow’s warning was related to spot Bitcoin ETFs.
Samson Mow warns traders not to sell BTC
The Jan. 3 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 caused Bitcoin to crash yesterday; was published by Matrixport, a cryptocurrency startup headed by former Bitmain CEO Jihan Wu.
The article expects the SEC regulator to reject all filings filed by Wall Street Bitcoin spot ETF issuers (BlackRock, Ark Invest, Fidelity, Grayscale, and about 10 others) in January for several reasons. The report also predicted a significant drop in the price of Bitcoin, recommending traders to start shorting BTC and buying put options instead of calls.
The main reason suggested by Matrixport was that all the necessary demands made by the regulator to the Bitcoin ETF issuers will be able to be met by them in the second quarter of this year. So Bitcoin ETFs could finally be approved, and that’s why Mow urges the cryptocurrency community not to dump their Bitcoin holdings now due to the possibility of rejection.
$730 million in crypto panic liquidated
The news pushed Bitcoin down, causing it to lose $3,000 and drop to $42,234. At this point, Bitcoin is up, adding 1.33%, as it is now changing hands at $42,811. The collapse of Bitcoin price caused traders to begin liquidating assets; This resulted in the liquidation of a total of $730 million in cryptocurrencies. Mainly, traders have been selling the two largest cryptocurrencies, Bitcoin and Ethereum.
Approximately $169 million worth of Bitcoin and $113 million worth of Ethereum were liquidated.
Prior to that, when Bitcoin gained momentum and surpassed the $45,000 level, a huge increase in whale activity was noted. According to crypto analyst Ali Martínez, the whales had acquired more than 30,000 Bitcoins, thus providing one of the factors that drove Bitcoin above $45,000. Now, they have begun to partially unload their holdings, sending the price of Bitcoin down again for fear of losing even more money.
