Matrixport's co-founder Jihan Wu, has come out to try and clear the air in response to the negative reactions that a recent Bitcoin report by his firm has gotten. This comes as allegations of market manipulation from the firm continue to resound through the crypto community.
Bitcoin Crash Due To Heightened Expectations
In a post on his X (formerly Twitter) platform, Jihan Wu suggested that the significant decline in Bitcoin's price was due to the "market's volatility spurred by expectations surrounding" the Spot Bitcoin ETFs. Bitcoin's price dumped by close to 10% on January 3, bringing the broader crypto market down in the process.
Data from Coinglass also shows that close to $700 million worth of positions in the market have been liquidated since then. Interestingly, the market began to decline not long after a report by Mattrixport found its way to the news. The firm mentioned in the report that there was every likelihood that the SEC would reject all pending Spot Bitcoin applications this month.
While it is uncertain whether or not the report was responsible for the crash, there are speculations in the crypto community that the report was a deliberate act by Matrixport to manipulate the market. Considering how Bitcoin's price has for some time now reacted to every development around Spot Bitcoin ETFs, this position may not be farfetched.
BTC price reclaims $43,000 | Source: BTCUSD on Tradingview.com
Wu Addresses Market Manipulation Rumors
In a subsequent post on his X platform, Jihan Wu implied that there was no way his firm could manipulate the market considering its status and location. Furthermore, he noted that they do not receive any insider information from US regulators as every of the firm's analyses is based on public information.
Having laid this premise, he went on to say that it was "unrealistic" to think that his firm's report could have triggered the crypto market to crash. According to Wu, the expertise of any analyst who has such an opinion should be examined. The firm's co-founder also addressed why his firm suddenly turned bearish after previously saying they expected approval to come in January.
Wu insinuated that it is not unusual for Matrixport's analysts to change their positions as they are always willing to adapt to the "market's dynamic nature and inherent uncertainty." As such, it is "unfair" to expect these analysts to be always consistent in their opinion, in Wu's opinion.
Having revealed that these analysts work independently without influence from the management, he pledged to keep supporting their independence. Doing otherwise could hinder their effectiveness, he says.
Meanwhile, Wu does not doubt that Bitcoin will prevail whether or not approval of the pending Spot Bitcoin ETFs comes in January. As to when approval will likely come, he didn't comment on that but simply said that it is "inevitable."
Featured image from Investment Monitor, chart from Tradingview.com
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