The deferment of Bitcoin ETF has got the Bitcoin plummeting again due to panic selling by some of the investors. Amidst the price correction, many Crypto street veterans are advising investors not to dumb their BTC holdings as Bitcoin ETF is not the end of the world.
Bitcoin ETF deferment was expected, Traders overreacting say wall street veterans
Post the deferment of the SolidX Bitcoin ETF the market saw a deep meltdown bringing BTC prices again closer to USD 6000, the last line of defense as far as bulls are concerned. Amidst this knee-jerk sell off a lot of experts have been advising investors not to panic as an ETF rejection doesn’t change the fundamentals of Bitcoin.
BKCM CEO Brian Kelly who also appeared on CNBC as he mentioned he is bullish on Bitcoin. He said that the current market sentiment does” by no means” constitute a” funeral for Bitcoin”. He added that “If You’re Selling Bitcoin on ETF Delay, You’re Doing it Wrong”
“It [bitcoin] has had a tremendous run off of $5,800, and that was all really because people thought there was going to be a bitcoin ETF. The SEC came out and postponed that decision. A little spoiler alert, on September 30, SEC will likely postpone it again, because the market is not ready for it and the SEC hasn’t had the answers to their questions yet.”
Dan Morehead, Pantera Capital’s CEO also shared the same sentiment as he appeared on CNBC Fast Money to explain why this decline was a case of investor “overreaction”. He explained that the market often overreacts to pieces of news, as the non-stop nature of the industry has worldwide traders making predictions on how a piece of news will impact prices.
— CNBC's Fast Money (@CNBCFastMoney) August 8, 2018
He also said that he doesn’t expect the Bitcoin ETF to hit the market anytime soon
“I think the SEC has been very cautious with an ETF… I still think it will be quite a long time until an ETF is approved. Here’s a perspective, the last asset class to be approved for ETF certification was copper, and copper has been on Earth for 10,000 years and it just got approved in 2012. I think Bitcoin in ETFs still have quite a way to go”
ETF deferment has caused panic but long term still
Over $9 billion has been wiped off from Bitcoin’s market cap since the news of SEC postponing the Solid X ETF hit the crypto street. Although a lot of analyst and veterans had already cautioned of the deferment, what looks like is that trading community still hung onto to that there could be an acceptance this time around.
When Tom Lee had appeared on CNBC after the rejection of Winklevoss ETF, saying that BTC technical have improved and believed that BTC could touch USD 22000.
Mati Greenspan, Analyst at EToro had also voiced his opinion on VanEck ETF application by saying that,
“the SEC was in no rush to approve the ETF and he believes that most likely they’re going to take their time and then which would mean that on August 10th will be a simple delay of the of judgment. I believe that by the time we get to by the time we get to Q1 of 2019 the market will be much more mature as we discussed previously there’s a lot of OTC desks that are coming online”
Crypto experts had been clear that the judgment of in favor of ETF was very unlikely this time and this bear bashing looks really unnecessary. This also means once a few sanities returns, the prices will creep up quickly again.
Will the BTC prices significantly breach USD 6000 proving the key voices on crypto street wrong? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.