On August 29, flagship cryptocurrency Bitcoin soared to as excessive as $28,000 following Grayscale’s victory. Nonetheless, it has now misplaced these positive aspects because the US Securities and Exchange Commission (SEC) selected to delay its choices on seven Spot ETF purposes.
Bitcoin Crashes Under $26,000
Bitcoin dropped by over 4% to $26,000 because the SEC prolonged the timeline to determine on the ETF purposes of BlackRock, WisdomTree, Invesco, Constancy, Valkyrie, VanEck, and Bitwise.
This worth motion contrasts with when the cryptocurrency had reacted positively to the information of Grayscale’s victory, with the US Courtroom of Appeals ruling in favor of the asset supervisor in opposition to the Fee.
Many had appeared ahead to the SEC’s resolution in these ETF purposes following Grayscale’s victory, hoping that the authorized loss would have softened the regulator into approving these purposes.
Nonetheless, Bloomberg ETF analyst Eric Balchunas had stated earlier that he wouldn’t be “stunned” if the SEC delayed these purposes. Based on him, these timelines might not matter as a lot because the SEC remains to be more likely to “give in” sooner or later, and we’ll finally see the approval of those purposes.
Following this extension, the SEC could have one other 45 days to evaluation these purposes and select whether or not to approve, deny, or delay its resolution. The regulator additionally has a most of 240 days to determine whether or not or to not approve or disapprove these purposes. Nonetheless, it has a number of key deadlines in between.
BTC worth falls beneath $26,000 following SEC resolution | Supply: BTCUSD on Tradingview.com
What’s Subsequent For BTC?
Many have projected the approval of a Spot Bitcoin ETF as one of many key occasions that might spark a major surge in Bitcoin’s worth (as we noticed how the market reacted following Grayscale’s victory). Nonetheless, the SEC’s resolution to delay these purposes reveals that it’s not able to again down simply but, and there might be continued resistance to approving a Spot Bitcoin ETF.
Whereas the approval of a Spot Bitcoin ETF stays unsure, Bitcoin could also be hanging within the pink all through this month. Based on historic data, September has all the time been recognized to be bearish for Bitcoin’s worth because the digital asset has closed within the pink most occasions on the finish of September.
In the meantime, October appears extra promising as there are main days to look at as Bloomberg analyst James Seyffart noted that the SEC’s subsequent deadline for these ETF purposes is in October. Ethereum Futures ETFs are additionally expected to launch in October, which might be a serious enhance for the market.
Regardless of this, analysts aren’t hopeful of Bitcoin hitting any new highs this yr, as one predicts that Bitcoin may consolidate between $25,000 and $32,000 for the rest of this yr.
I gained’t be stunned to see #Bitcoin consolidate between $25,000 – $32,000 for the rest of 2023. pic.twitter.com/2BihBPZaCJ
— Crypto Rover (@rovercrc) August 31, 2023
Featured picture from iStock, chart from Tradingview.com
