Jihan Wu: Matrixport EFT Report Didn’t Trigger Bitcoin Price Drop

Matrixport EFT Report Didn't Trigger Bitcoin Price Drop - Jihan Wu

Key Insights

  • Jihan Wu denies Matrixport report deliberately moved BTC price via spot ETF uncertainty
  • States research team operates independently without executive interference
  • Believes Bitcoin adoption inevitable long-term regardless of current SEC decision

SHANGHAI – Jihan Wu, founder of crypto mining firm Bitdeer and financial services company Matrixport, dismissed suggestions a downbeat Bitcoin exchange-traded fund (ETF) prediction published by the latter’s research team triggered this week’s double-digit BTC price plunge.

Bitcoin nosedived 10% on Wednesday to below $41,000 after Matrixport analysts circulated a report to clients arguing U.S. regulators likely delay approving spot crypto ETFs this month despite industry expectations of a breakthrough.

The analysis coincided with the sudden crypto selloff, fueling accusations Matrixport deliberately disseminated negative news to profit from Bitcoin futures trades via its lending arm.

But Wu strongly denied orchestrating the plunge, insisting Matrixport researchers operate independently without executive interference. He instead blamed high funding rates on perpetual swap platforms, plus some crypto-related equities retreating, for spooking traders.

The volatility and potential ETF approval uncertainty are ultimately unimportant, Wu said via spokesperson on Wednesday, adding Bitcoin’s long-term adoption remains “inevitable” in his view.

Matrixport’s report nonetheless casts doubt on whether Securities and Exchange Commission (SEC) leadership under Gary Gensler favors crypto innovation – potentially dampening investor enthusiasm this year.

Several spot ETF applications are currently filed with U.S. regulators seeking direct Bitcoin exposure for mainstream stock investors, marking a watershed moment for crypto legitimization. Approval remains subject to SEC consensus, however, with decisions tipped this month.

Industry experts reacted angrily to perceived efforts from Matrixport exploiting asymmetric information flows between East Asia traders and Western exchanges to undermine positive ETF sentiment.

But Wu stated research analysts operate free from corporate interference. He instead eyes a bigger crypto growth picture, assuring steady blockchain advancement regardless of any temporary regulatory uncertainty.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

Leave a Reply