Bitcoin (BTC) did not immediately react to the news of a delayed exchange-traded fund (ETF) decision, but the price plunged a few hours later. The US Securities and Exchange Commission (SEC) said it was extending the decision deadline to September 30, leaving BTC traders with another waiting stretch. Just after the announcement, BTC stood above $7,100, but the price quickly crashed to lows of $6,620.50 around 19:00 UTC, losing roughly 6% in the past 24 hours.
This level of volatility is relatively high for BTC and reflects the importance placed on a positive ETF decision. While the chances were slim, the price of BTC still sustained its levels, going above $8,400 at one point.
The ETF proposed by the CBOE market operator is seen as important in potentially creating demand for large buyers to acquire and store BTC assets. However, some believed the hype was created for another short-term pump in BTC prices. For others, the decision is key to unlocking the true potential of BTC prices:
In the latest relatively short bull run, BTC recovered from lows of under $6,000, but a big portion of the gains has been wiped out again. As before, when BTC slides on massive selling, the funds go into Tether (USDT). Based on the most recent data from Cryptocompare, the last day saw around 53% of all BTC trades happen against the USDT as sellers sought a stable asset to wait out the crash. Despite the price drop, altcoins were hurt more, giving BTC a 48.2% dominance in terms of market capitalization.
BTC traders still expect to see an end-of-year rally, but there is no guarantee prices will take off in the fall of 2018. The anticipated rally in July was much smaller, and enthusiasm for BTC has dwindled. Daily trading is strictly within the $5 billion range by adjusted volumes, of which most trades are internal, done by crypto owners or USDT holders. Retail interest in buying BTC is meager, and institutional money is not flowing into BTC right now.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.