Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Thursday, January 4th, and today we are talking about Bitcoin's

big dump yesterday. Before we get into that, however, if you are enjoying the breakdown,

please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper

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breakdown pod. Well, friends, it had been going so well that something had to give, right?

Early on Wednesday morning, Bitcoin went into a tailspin, dragging the rest of the crypto market

down with it. A 10% drawdown plunged Bitcoin to 41,500 over the course of an hour. Ethereum, Solana,

and a long tail of altcoin suffered drops of a similar size. Price recovered slightly throughout

the day, but Bitcoin headed into the night still trading below 43,000. The trigger for the

price drop seemed to have been a one-page report from Matrixport. The research firm published a note

entitled, Why the SEC will reject Bitcoin Spot

ETFs again.

The block was first to publish a news story on the report, tweeting, SEC will reject all Bitcoin

spot ETFs in January, says Matrixport analyst.

And from there, the algorithmic news traders did their thing and sold off hard.

The report itself acknowledged the endless streams of meetings between the SEC and ETF issuers

over the past month, but stated, we believe all applications fall short of a critical requirement

that must be met before the SEC approves.

Matrixport suggested that these requirements could be fulfilled by the second quarter.

...