Bitcoin price analysis: BTC/USD crashes to $6,556 as SEC postpones VanEck verdict

SEC Hester Peirce Bitcoin ETF

Bitcoin loses most of its gains from July rally as SEC postpones ETF decision

Regarding the SEC's latest decision to reject a bitcoin ETF, Peirce mentioned that her colleagues went through an analysis and figured the proposed rule change is not consistent with the Securities Exchange Act.

"Although the VanEck SolidX Bitcoin Trust, considered by many to be the best candidate for possible approval, will make a possible decision this month, it is widely believed that the SEC will extend its deadline". Meanwhile, the ETF team has submitted to the SEC key changes addressing all concerns cited as reasons for rejecting Solidx Bitcoin Trust ETF a year ago. Do you think the SEC will eventually approve this bitcoin ETF?

Following Bitcoin's trend, Ethereum prices also plunged to 4-1/2 month low, following the general pessimism created by SEC's postponement of its pending decision on Bitcoin ETF, which is seen to have affected the altcoins as well.

In general, the SEC has the power to postpone specific decisions if it considers that the proposal is controversial.

Erdogan says USA turned its back on Turkey, upsetting Ankara
On Friday the currency dropped as much as 18 percent at onepoint, the biggest one-day fall since a 2001 financial crisis inTurkey. The Lira has lost almost a third of its value this year, as relations with the United States have become increasingly strained.

"The crypto market cap lost 20 per cent in the last two weeks, falling from $US300 billion to $US250 billion", said analysts for FXPro, a London-based foreign exchange broker. Second, it could be that bitcoin was also reacting to the OTC market, which exhibited unusual behavior that may have caused large sell orders to be liquidated. Around the time the SEC announced on their delayed approval, all seemed well and the market was looking like it was going to hold up and ignore the news. To do so would, though, require a rule change from CBOE Global Markets Inc for that to happen, and that's what the SEC has been mulling over. Bitcoin was down around 8 percent from 24 hours ago at 10.53 a.m. London time, trading at just over $6,500, according to data from CoinDesk.

The news triggered a market reaction, ultimately sending the total value of all cryptocurrencies down to $221 billion on Wednesday, its lowest level since November 2017.

One commissioner, Hester Peirce, dissented from that decision, later telling CoinDesk in an interview that the move to block a bitcoin ETF is a disservice to both investors and innovators. "A decision can only be made in March 2019".

Of course, this means that Bitcoin's price will once again see pressure build as we near toward September, likely raising up in anticipation of what would be good news and then either continuing up or bursting like we saw today.

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