Short-term plunge of 8%: An inaccurate report celebrates Bitcoin's 15th birthday?

Author: 0xmonomi

January 3 marks the 15th anniversary of Bitcoin's birth, but a report from Matrixport has severely impacted market confidence, causing Bitcoin's price to plummet by about 8% within three hours, leading to a disastrous market performance. The following text will outline the background and consequences of this event.

Matrixport Releases Report Claiming SEC Will Reject Bitcoin Spot ETF Applications, Stirring Up a Storm

In the torrent of the information age, a report from Matrixport acted like a stone that creates ripples. The report firmly asserts that due to the SEC's strict standards and Chairman Gary Gensler's political stance, all Bitcoin spot ETF applications will be rejected in January, predicting that approval may be delayed until the second quarter. This is not only a cold prediction for the market but also a hidden skepticism. They suggest that investors adopt a conservative strategy, buying put options or even shorting Bitcoin, predicting its price will fall to the range of $36,000 to $38,000.

Following the release of this report, panic quickly spread throughout the crypto market, with BTC's price sharply dropping from a high of $45,000 to around $40,000, plummeting $5,000 in a short period. According to Coinglass data, within four hours of the report's release, the total liquidation amount across the network reached $531 million, including $496 million in long liquidations and $35.37 million in short liquidations, involving major cryptocurrencies like BTC, ETH, and SOL.

However, the credibility and professionalism of this report were soon called into question. Bloomberg's ETF analyst Eric Balchunas expressed clear skepticism about it. He pointed out that contrary to Matrixport analysts' pessimistic predictions, most sources, including mainstream journalists and insiders, held a positive attitude, believing the probability of ETF approval to be as high as 90%. Why did Matrixport's analysts quickly change their stance and make such contradictory statements without sufficient evidence?

This is not just a matter of market prediction; it is also about the accuracy of information and professional ethics. When an institution regarded as authoritative publishes such views, it not only affects investors' decisions but can also have far-reaching impacts on the entire market. In this case, Matrixport's responsibility should not be overlooked; their analysis, lacking sufficient basis, encouraged investors to adopt aggressive market confrontation strategies, which is extremely dangerous and irresponsible.

The Block Amplified the Situation by Reposting Matrixport's Report Without Verification

After the release of Matrixport's controversial report, another striking development unfolded. The Block, recognized as an authoritative media platform, quickly reposted the news without thorough investigation: "SEC will reject all bitcoin spot ETFs in January, says Matrixport analyst." This action immediately sparked heated discussions on the internet, with many netizens sharply criticizing The Block's decision.

One particularly thought-provoking comment from a netizen was: "Why are you quoting an unknown research analyst with only 600 followers? Your headline could have a huge impact on the market." This not only directly questioned The Block but also reflected a serious issue in current media reporting: in the pursuit of speed and traffic, the authenticity and accuracy of information sources are often overlooked.

As an authoritative media outlet, The Block should bear the responsibility of providing the public with accurate and verified news. However, in this instance, they seemingly failed to do so. Their rapid reposting did not delve into the background or professionalism of the Matrixport analyst, nor did it consider the broader implications and reliability of the news. Such behavior not only damages their own credibility but may also mislead the public, especially in the context of complex and volatile financial markets.

This incident reveals a dangerous trend in modern media: in the race to grab headlines, the in-depth exploration and quality control of information are neglected. This practice is not only irresponsible to readers but also has a negative impact on the entire information dissemination ecosystem. The Block's actions undoubtedly challenge media professionalism and test public trust.

A Similar Incident Occurred Nearly Three Months Ago, Causing Short-Term Market Volatility

The recent events involving Matrixport and The Block are not the first missteps in the financial information sector. As early as October 16, we witnessed a similar lesson when Cointelegraph published a message claiming that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock's iShares Bitcoin spot ETF. This news immediately triggered a strong market reaction but was quickly questioned by Bloomberg's ETF analyst James Seyffart, who pointed out that there was no substantial evidence to support the claim.

The development of this event demonstrated the immense influence of fake news on the market. Driven by this news, Bitcoin's price surged over 10% in less than half an hour, breaking through the $30,000 mark for the first time in three months. However, as debunking information spread, Bitcoin's price quickly fell from the high of $30,000 to below $28,000, a drop of more than 7%. This market surge and collapse triggered by an unverified rumor ended in just ten minutes.

Yet, the impact of this ten-minute chaos and volatility was profound. Nearly $100 million in market value evaporated during this turmoil, including $72 million in short liquidations and $26 million in long liquidations. This event not only revealed the instantaneous impact of fake news on the market but also highlighted the significant responsibility of the media in information dissemination. Just like the recent events involving Matrixport and The Block, Cointelegraph's actions also represent a betrayal of public trust.

After the fact, Cointelegraph explained that they hastily published the news based on an unverified alert on Telegram and a screenshot. This erroneous decision underscores how news organizations may recklessly overlook in-depth verification of information in the pursuit of rapid reporting. These events remind us that whether traditional media or emerging platforms, it is crucial to rigorously scrutinize the reliability of information sources when disseminating significant news to prevent similar market chaos and losses from occurring again.

In the face of widespread criticism from the market, Matrixport and its founder's response left investors dissatisfied.

When confronted with the controversy of "Matrixport's report triggering a market crash," Wu Jihan's response on X seemed dismissive, even carrying an air of evading responsibility. His post revealed a lack of seriousness regarding the event: "Woke up to find that the analyst's report is to blame for the market crash; I won't take the blame." This attitude appears overly casual when addressing serious market impact issues, lacking a profound understanding of investors' feelings and the importance of financial information dissemination. Wu Jihan further defended analyst Markus's contradictory views, interpreting his rapidly changing analysis as an advantage, a perspective that overlooks the importance of consistency and reliability in financial analysis for market stability.

Wu Jihan's "today is different from yesterday" attitude may provoke distrust among market participants, exacerbating market instability. He simplistically touted the analyst's rapidly changing views as an advantage, which in reality neglects the influence and professional responsibility on the market. In the highly complex and interconnected environment of financial markets, every word from an analyst can trigger a chain reaction. Therefore, it is crucial for financial institutions and their analysts to handle their market impact with greater caution; consistency, reliability, and professionalism are always at the core of financial analysis.