According to CryptoPotato, Matrixport is issuing a warning of an impending 7% drop in the bitcoin price over the next two weeks, citing a bearish signal for the first time since August 2023. This forecast is in line with previous statements where the company expressed concern over the possible rejection by the US Securities and Exchange Commission (SEC) of all bitcoin spot exchange traded funds (ETFs) in January.

In a blog dated 8 January, Matrixport highlights its concerns about a potential decline in the bitcoin price and cautions that risk is limited, even with the expected increase in leverage. The analysis also points to a possible retest of the price in the $36,000 to $38,000 range. There has been a decline in the bitcoin funding rate on cryptocurrency exchanges from 66.1 per cent to 7.4 per cent in January, which Matrixport believes indicates the technical vulnerability of the cryptocurrency, especially after the volatile increase in funding in early 2024.

The warning follows another report in which analysts expressed scepticism about the SEC's possible approval of spot bitcoin ETFs by Chairman Gary Gensler. Matrixport notes that Gensler's previous comments highlight his desire for greater compliance in the crypto industry and his reluctance to support spot bitcoin-ETFs, which could legitimise BTC as an alternative means of saving.

The stance drew criticism from Galaxy Digital's head of research Alex Thorne, who called Matrixport's report "confusing" and "meaningless". Bitcoin fell sharply to $41,500 in response to the report. Matrixport co-founder Jihan Wu said the company does not influence its analysts' reports, and the market's reaction was unexpected. As the crypto community awaits the potential approval of a spot bitcoin-ETF, the positive sentiment around this could clash with the challenges foreshadowed by Matrixport and create uncertainty in the cryptocurrency markets.