Bitcoin in the $6300 range and falling.
This week’s decision by the United States Securities & Exchange Commission (SEC) to delay the decision on the pending SolidX-VanEck Bitcoin ETF application had caused a storm in the markets, according to CryptoDaily.
An ETF is a financial product that tracks the price of an asset and is listed on an exchange. It means that investors don’t actually have to buy the underlying asset.
This is VanEck’s third attempt to push a bitcoin ETF through, having been rejected by the SEC twice previously. On this occasion, the SEC said that it is pushing out its decision until September 30
The same price drop phenomenon happened a few weeks earlier when the SEC also rejected a Bitcoin ETF application made by the Winklevoss twins and Gemini.
That’s why it is expected that over the next two months, it is estimated that there’s a total of nine current ETF applications that are due for a decision.
“This means that during the rest of August and September, we could see some very big changes in the markets indeed. The more ETFs are rejected, the less of an impact they will have (in theory) but, as the application system is still in its infancy, we expect these nine to cause a bit of a storm. Especially if a few are accepted.”
“Combined with past submissions from firms ProShares, Direxion and GraniteShares, a total of 10 bitcoin-related funds are being weighed by SEC officials, according to public records, although the VanEck/SolidX bitcoin ETF is the only “physical” ETF among all the proposals. September will see a series of deadlines for bitcoin ETFs, starting on September 15, the date by which two funds by GraniteShares will receive a thumbs-up or thumbs-down. The funds were initially proposed on January 5. The deadline for Direxion’s four funds is September 21, as indicated by public records, after being first submitted on January 4.”
Down down down
According to the Bitcoinist, the price of Bitcoin fell sharply and Bitcoin is now firmly into the critical price range, which has previously proven to be strong support, with $6650-$6800 being a key area where buyers must enter the market to avoid Bitcoin making new lows.
CNBC said Bitcoin was down around 8% on Wednesday from 24 hours ago, trading at just over $6,500 losing over $9 billion in value.
Bitcoin hit near-$20,000 record high in December 2017 and on June 24, 2018, it hit a low of $5,755 but on July 25, hit a high of $8,507.
BTC fell to $6,300+ today – the lowest level since July 16. It was a 7.9% sell-off witnessed in the last 24 hours only, according to Coindesk.
Cointelegraph says altcoins have also suffered high losses this week. Ethereum (ETH), having failed to match Bitcoin’s July rise, nonetheless fell harder, sustaining around 10% the last 24 hours and incurred monthly losses around 35%.
ETH is trading around $366.
cryptocurrency hedge-fund manager Dan Morehead, the Pantera Capital CEO told CNBC that instead of panicking over the ETF news, investors should feel optimistic about ICE, the owner of the New York Stock Exchange, and hope it is teaming up with Microsoft to build out Bakkt, a new company that will serve as a “ecosystem for digital assets,” including bitcoin. Bakkt, the Intercontinental Exchange’s cryptocurrency project announced in early August that it partners with Microsoft and Starbucks.
“That’s huge news,” Morehead said. “That is going to be a very profound impact over the next five or 10 years for the markets, and, to my mind, that’s what people should be focused on.”
As for the tumbling price of bitcoin, Morehead pointed out that the cryptocurrency is still up about 82 percent year over year.
Business Insider said other major digital tokens were also under pressure on Wednesday:
-Ethereum is down 2.5% to $368.18
-XRP is down 6.9% to $0.35
-Bitcoin Cash is down 5.2% to $621.40
-EOS is down 8.4% to $6.07
-Stellar is down 6% to $0.21
-Litecoin is down 1.8% to $66.11
“A report released on Wednesday found that ICO tokens — digital assets issued by startups to raise cash for projects — had an average return of -55% in the second quarter , pointing to extended weakness across the sector,” said Business Insider.