Bitcoin, driven by a formidable trading volume of $20 billion, has witnessed a bullish transformation that hoisted the cryptocurrency above the critical $30,000 benchmark. However, the United States Securities and Exchange Commission’s (SEC) recent declaration that the filings for Bitcoin exchange-traded funds (ETFs) are insufficient, puts a certian strain on Bitcoin. Hence, amid the bullish surge, the crypto currency is under subtle pressure.
In earlier developments, a slump in Bitcoin prices was observed following the response of SEC to applications for Bitcoin ETFs by asset managers. These applications, in the lens of SEC, were wanting in terms of clarity and completeness. As a causal effect, the Bitcoin market has responded with a slight descent in price. This comes after the market’s affirmative reaction to BlackRock’s submission of ETF paperwork that incorporated Bitcoin, leading to a price surge over June.
A knock-on consequence of this declaration was seen in a near 2% drop in Coinbase shares. The fallout of this SEC assessment is widespread covering BlackRock and other asset managers. Companies like Fidelity Investments, Ark Investment Management and WisdomTree are some amongst others that have started revising their Bitcoin ETF applications.
SEC’s input into this matter primarily emphasizes on the shortage of information about the surveillance arrangements between exchanges and spot Bitcoin exchanges. Its insistence on a “surveillance-sharing agreement” aims to prevent market manipulation.
The absence of concrete approval and clarity from SEC on Bitcoin ETFs, teamed with incomplete filings, has contributed to this minor dip in Bitcoin prices. However, upon satisfactory addressing of SEC’s concerns and provision of adequate detailing in their applications by asset managers, the market may regain its lost confidence thereby affecting future Bitcoin prices.
Going by the technical analysis, Bitcoin has to overcome the major obstacle at the $31,000 mark. Potential achievements at this level may lead to escalations towards $32,500 and $34,000. On the flipside, if Bitcoin is unable to maintain above the $30,000 support level, it may experience a push towards the 38.2% Fibonacci retracement level at $28,700 or even 50% retracement level at $28,000.
Against these current circumstances, it seems wise to wait for a distinct and decisive breakout before making significant trading decisions. Stay ahead in the game by keeping an eye on the latest ICO projects and alternative cryptocurrencies by exploring our carefully selected collection of the top 15 digital assets to watch in 2023.
Source: Cryptonews
