Bitcoin Price Sees Sluggishness As SEC Delaying Decision on BTC ETFs
The US Securities and Exchange Commission has now announced delays for all six of the new Spot Bitcoin ETF applications.
the U.S. Securities and Exchange Commission (SEC) has announced a delay until October for its decision on all spot Bitcoin exchange-traded fund (ETF) applications.
This delay affects a host of applicants, including prominent names like BlackRock, WisdomTree, Invesco Galaxy, Wise Origin (Fidelity), VanEck, Bitwise, and Valkyrie Digital Assets, all of whom had eagerly submitted their ETF applications earlier this year.
Bitcoin's Price Plunge
The news of the delay had an immediate impact on Bitcoin's price, which plummeted 4.1% within 24 hours, settling at $26,100. This volatility highlights how regulatory decisions continue to influence the cryptocurrency market, which has been awaiting the approval of a spot Bitcoin ETF for some time now.
The spot Bitcoin ETF has been a point of contention and anticipation within the crypto community. Advocates argue that it would democratize Bitcoin investments by making them more accessible to retail investors, eliminating the need for complex wallet setups or direct Bitcoin purchases.
The prospect of a spot Bitcoin ETF has been hailed as a bridge between traditional finance and the crypto space.
SEC's Extended Deadline and Public Feedback
The SEC's decision to extend the deadlines for these applications indicates a desire for more public input and feedback. The new deadlines are as follows: October 17 for Wise Origin, Galaxy, and WisdomTree, and October 19 for Valkyrie, with Bitwise having an October 16 deadline.
The regulator's initial review of these applications gives it a total of 240 days to reach a final decision, and the SEC has historically used every available comment and review period to maximize this timeframe, as Thursday's filings suggest.
Bitcoin Price Analysis
As per CoinStats, Bitcoin is currently trading at $26,034.59, down -4.43% in the previous 24 hours, with a live market cap of $507B. It has a circulating supply volume of 21,000,000 BTC coins and a maximum supply volume of 21,000,000, with a 24-hour trading volume of $65B.
Source: CoinStats
Bitcoin's price has failed to break through the $27,000 resistance level. BTC began a new slump and gathered bearish momentum below $26,500.
There was a significant decline below $26,200. The price even dropped below the $26,000 mark. The price has produced a low near $25,663 and is now consolidating losses. Bitcoin is currently trading below the $26,600 mark as well as the 100 hourly Simple Moving Average.
On the hourly chart of the BTC/USD pair, a key negative trend line is forming with resistance near $26,750. On the upside, immediate resistance is near the $26,250 level. It is near the 23.6% Fib retracement level of the latest slide from the swing high of $28,150 to the low of $25,663.
Additionally, the RSI is at 37 which marks an oversold market. As bears are fading away, there's a possibility that bulls will enter the market soon.
Source: TradingView
Conclusion
In conclusion, the SEC's delay in deciding on spot Bitcoin ETFs and the recent court ruling underscores the complexities and nuances surrounding cryptocurrency regulation. The crypto community will be closely watching as these developments unfold, with the hope that increased regulatory clarity will contribute to the maturation and broader adoption of cryptocurrencies in the financial world.
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