The crypto community has been quick to chastise Matrixport, a digital asset investment platform and research provider, for possibly contributing to the violent 6%\u00a0flash crash<\/a>\u00a0that wiped $100B from the crypto market cap on Dec. 3.<\/p>\n A research\u00a0report<\/a>\u00a0published by Matrixport on the same day asserted that the U.S. Securities and Exchange Commission (SEC) will deny all pending applications for spot Bitcoin ETFs. The analysis contrasted against the rampant speculation predicting that the first U.S.-based spot ETF will receive approval in\u00a0early January<\/a>, sending digital asset prices\u00a0flying<\/a>\u00a0late last year.<\/p>\n The Block, a crypto news outlet, published an article covering Matrixport\u2019s report, amplifying its reach and leading many analysts to blame the violent market momentum on Matrixport\u2019s analysis.<\/p>\n \u201cOver $1B of Bitcoin futures open interest wiped out in one candle,\u201d Will Clemente, the co-founder of Reflexivity Research,\u00a0tweeted<\/a>. \u201cThanks Matrixport.\u201d<\/p>\n <\/p>\n \u201cBitcoin dumped over a rumor started by Matrixport,\u201d\u00a0said<\/a>\u00a0Lark Davis, a Bitcoin proponent and popular influencer. \u201cGives you a taste of what would happen if the SEC actually did deny the ETF.\u201d<\/p>\n However, other onlookers are skeptical that Matrixport\u2019s research was the lone catalyst driving the violent market action,\u00a0pointing<\/a>\u00a0to excessive leverage in the Bitcoin markets as evidenced by sky-high funding rates for long positions.<\/p>\n \u201cFunny to see people blaming a Matrixport report for the dump,\u201d tweeted\u00a0Alex Kr\u00fcger<\/a>, an economist and influencer \u201cBTC perps funding on Sunday was almost 100% annualized. That’s very rare, the definition of a very hot market. It’s down to 10% now (the baseline).\u201d<\/p>\n \u201cFunding rates were historically high before this flush,\u201d\u00a0said<\/a>\u00a0Scott Melker, host of The Wolf Of All Streets podcast. \u201cThey have completely reset.\u201d<\/p>\n Jihan Wu, the co-founder of Matrixport and former CEO of Bitmain,\u00a0responded<\/a>\u00a0to the drama on X, asserting that his company\u2019s management doesn’t influence the opinions of its analysts.<\/p>\n \u201cThis recent report was prepared for Matrixport’s clients,\u201d Wu tweeted. \u201cHowever, its wide spread by the media was not planned by Matrixport and is beyond our control.\u201d<\/p>\n Start for free<\/a><\/div>\n The debacle came just two days after Matrixport\u00a0published<\/a>\u00a0a different research report on Jan. 1 predicting that a spot Bitcoin ETF would likely receive approval, tipping that the asset could rally more than 15% to surpass $50,000 if so.<\/p>\n\n
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