BTC Wires: After the SEC denied approval to 9 Bitcoin exchange-traded funds or ETFs recently, two of which were from ProShares in collaboration with the NYSE, the prices of Bitcoin have fallen again, taking the market precariously close to the rock bottom; given it was already undergoing a slump. The crypto market has seen an overall decline with Bitcoin prices falling by 4% and other tokens such as Ethereum, Bitcoin Cash and Ripple falling by 5% each.
Most commentators keeping an eye on the industry feel that the fall is primarily because the US Securities and Exchange Commission, or the SEC in short, has rejected applications for so many ETFs pitched to them. The decline closely followed the SEC announcement with Bitcoin price going down to $6,250 from $6400. However, it did stabilize a while later, standing at $6450.
Earlier Arthur Hayes, the Chief Executive Officer of Bitmex had remarked that the Bitcoin might touch the $5000 zone and then have a price rally. What is clear is that the Bitcoin definitely needs a period where it is as stable as possible for it to be strong enough to initiate a recovery and eventually a price rally.
Over the course of the last 14 months, the most stable that Bitcoin has been is in this month, August. It has remained steady in the zone of $6000 since 8th of August and has shown only limited volatility.
The fact that the prices came up a little after the immediate slump that followed the SEC decision is indicative of a reassuring stability. It also showed that investors were correctly informed that the rejected ETFs were only tradable instruments with basis in derivatives.
However this slump has seen certain virtual assets fall by as much as 10 to 15% such as Stellar, Ontology and Digibyte. Although that is a worrying sign we can hope that the market will regain its strength and the slump will be arrested soon enough to make a rally possible. In fact what the SEC said in this regard is somewhat reassuring as they pointed out the rejection is in no way a sign that the technology might be flawed in itself.