Bitcoin over past couple of days has seen some great spikes. And these spikes have come to post the resilience its showed of correcting minorly in the wake of the US Securities and Exchange Commission’s latest round of Bitcoin ETF proposal rejections. This resilience and some follow up good news has created a sought of fear in the minds of the bears and it seems they are covering their short positions.
Bitcoin ETF to undergo review keeping the market active
The SEC announced late on Wednesday that it had decided to reject nine proposals for Bitcoin exchange-traded funds from ProShares, Direxion, and GraniteShares. The regulator said that in all instances, the exchanges have not “the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices”. However, it also said that that the rejections “does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment”.
However, it was announced on Tuesday that the rejection orders had been stayed and would now be reviewed by senior SEC officials.
As SEC secretary Brent Fields wrote in a letter addressed to NYSE Group senior counsel Eugene Schlanger:
“This letter is to notify you that, pursuant to Rule 43 1 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action. In accordance with Rule 43 1 (e), the August 22 order stays until the Commission orders otherwise.”
Commissioner Hester Pierce who had previously dissented also explained the order in a tweet:
“In English: the Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action, as will now happen here.”
In English: the Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action, as will now happen here.
— Hester Peirce (@HesterPeirce) August 23, 2018
Bitcoin Resilient and doesn’t seem to be breaching USD6250-6300
Even when SEC came out with a surprise decision rejecting nearly all major bitcoin ETF applications to the likes of ProShares, Direxion, and GraniteShares, much ahead of reported deadlines, the bitcoin prices did not breach USD 6300. Although there is a sentimental dampness there is no accelerated selling like the one seen when the Winklevoss ETF application was rejected.
Some of the likes of CZ of Binance and eToro CEO Yoni Assia also feel the bear market seems to be nearing the end as the interest of a lot of retail investors is turning towards cryptocurrency trading. Assia said to NewsBTC in an exclusive interview
“In our view, the recent market correction is good for the long-term development of the market. Cryptoassets are still a relatively nascent market; emerging technologies like this often see swings in their value in the early days. Market adjustments like those we have experienced recently help to stabilize prices and make the industry more robust. Despite these adjustments, however, we have not seen a significant dip in demand for digital assets.”
“As the market matures, more investors are expanding their portfolios to include cryptos, while new investors are opening portfolios to trade crypto assets. We do not expect this demand to slow down any time soon, as more people recognize the potential of crypto assets,” Assia stated
Once the hurdle of Bitcoin ETF is over, either way in approval or denial, the institutional investors which are still on sidelines will start contributing to the crypto markets. And as eToro puts it, retail investors are already increasing their stakes in cryptocurrencies. With both sets of investors looking at cryptocurrencies and chances of a revision of Bitcoin ETF, it doesn’t look like bitcoin will breach USD 6250/USD 6300 and hence as Ran NeuNer points out “Bitcoin shorts being closed quickly – 10% closed in the last few hours.”
Bitcoin shorts being closed quickly – 10% closed in the last few hours. pic.twitter.com/67IFEDQDWy
— Ran NeuNer (@cryptomanran) August 25, 2018
Do you think there is enough of the table for Bulls to scare the Bears? Do let us know your views on the same.