Market Plummets But Hope Isn’t Lost Yet for Bitcoin

Andrew Cummings
August 11, 2018

Looking more at the charts, price attempted to break back above the 100-hour MA (red line) yesterday but failure to do so and the SEC news has resulted in Bitcoin moving lower into support at $6,500.

The SEC has delayed this particular decision until September 31 and while some might say this was a good sign and that it meant they were deliberating on approving it, the market has been pessimistic of the news.

The proposed rule change from CBOE would, if approved, constitute a critical point on a path to listing a bitcoin ETF, in conjunction with money management firm VanEck and crypto startup SolidX. A second attempt by Cameron and Tyler Winklevoss, founders of crypto exchange Gemini, to list their ETF was recently rejected by the SEC.

As it stands, Bitcoin dominance is high, as is the hashrate of Bitcoin, therefore a surge in Bitcoin's price soon could have a huge impact on the rest of the markets.

Over $9 billion has been completely erased from the cryptocurrency space, and it appears bitcoin isn't alone in its descent.

"We believe that neither the volatility nor the current volume in the bitcoin futures market will inhibit the creation and redemption process by authorized participants and that these creations and redemptions will keep the proposed ETF's market price in line with its NAV".

As aforementioned, altcoins followed the foremost digital asset, with cryptos like XRP and Bitcoin Cash (BCH) actually outperforming Bitcoin by upwards of 1%.

The SEC postponed its decision on whether to approve the Bitcoin ETF, dealing a blow to bulls who had bet a green light from the regulator would help sustain last month's tenuous rally. Not all hope is lost and truly, Bitcoin will recover from this.

However, given the recent price plummet, it would seem that there is really need for much emphasis on bitcoin ETFs and a real need for a bitcoin ETF to be approved. The SEC explains that the former did not meet the requirements to ensure that their ETF is created to protect investors from fraudulent and manipulative practices.

The markets didn't react well to the SEC delaying its decision on Tuesday. Of course, the SEC may delay a final thumbs up or down by an additional 240 days if deemed necessary. While it is likely that there wasn't a single reasoning behind this surprising run-up, investors cited the speculation regarding a promising Bitcoin ETF as a primary catalyst.

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