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I am among the winners, and I would like to express my heartfelt thanks for this incredible opportunity. Being recognized in the #BinanceSquareDeFiChallenge is truly an honor, and I am grateful to be a part of this amazing community. Thank you‼️ #Binance #BinanceSquare #DeFiChallenge
#Matrixport , a crypto-financial service platform, has been notably optimistic about the approval of a spot #BitcoinETF this month.
However, the firm’s recent report suggests a shift in sentiment, speculating that the US Securities and Exchange Commission (#SEC ) may reject any proposals in January 2024.
January Blues for Crypto?
The growing anticipation within the crypto community for the approval of a Bitcoin #ETFs has had a tremendous effect on the industry, which has recovered from the downturn of 2022. An approval is also expected to potentially open new avenues for mainstream investors to participate in the digital asset market.
As such, several experts, as well as Matrixport, have been fairly bullish on this front.
However, in its latest report, Matrixport highlighted that the current leadership overseeing the approval of ETFs at the SEC consists of a five-person voting Commissioners team, primarily composed of Democrats.
What If the SEC Denies Spot Bitcoin Approval Again?
It is important to note that traders began betting on the approval of an ETF in September 2023, which translates to a substantial influx of at least $14 billion in fiat and leverage has been directed into the market.
Some of these capital inflows may be linked to more favorable macroeconomic conditions resulting from the Federal Reserve adopting a dovish stance, according to the report.
In the event of a denial by the SEC, the report anticipates potential cascading liquidations, especially with expectations that a significant portion of the additional $5.1 billion in perpetual long Bitcoin futures might be unwound. This scenario could lead to a rapid 20% decline in Bitcoin prices, reverting to the $36,000/$38,000 range.
Should there be no news of approvals by Friday, January 5, 2024, experts advise the traders to hedge their long exposure by acquiring $40,000 strike puts for the end of January or consider taking outright short positions on Bitcoin through options.
Chainlink and #zkSync Integration: A New Era in the DeFi World🌎
The SCALE Program and Chainlink's RoleMarking a significant step in the blockchain world, Chainlink's inclusion in the #SCALE program and its integration with the zkSync Era Layer 2 network, supported by Matter Labs, has sparked considerable interest in the sector. The SCALE program aims to enhance the sustainability and scalability of blockchain networks. In this context, Chainlink serves as a bridge between smart contracts and real-world data, opening up blockchain technology to a broader range of applications.zkSync and Matter Labs' ContributionzkSync is an Ethereum-based Layer 2 solution developed by Matter Labs. This platform targets a vital need for DeFi applications by offering high transaction speed and low gas fees, aiming to make blockchain technology accessible to a wider audience.The Importance and Impact of IntegrationThis integration enables Chainlink nodes to operate on zkSync, offering efficient and cost-effective access to Oracle data. This situation allows developers to enhance the reliability and accuracy of the data used in smart contracts. Additionally, the integration aims to reduce gas fees, a significant advantage, especially for DeFi applications.Chainlink Staking and User InterestThe Chainlink v0.2 staking process reached full capacity quickly with over 19 million LINK tokens staked, demonstrating the strong interest and confidence users have in Chainlink. Staking improves the security and efficiency of the Chainlink network, offering users the opportunity to participate in governance and earn rewards.The Chainlink and zkSync integration expands the boundaries of blockchain technology and makes DeFi applications more reliable, scalable, and user-friendly. This integration also sheds light on the future development of blockchain networks and encourages innovation in the sector.#Chainlink #ZkSync $LINK