Market Plummets But Hope Isn't Lost Yet for Bitcoin

Market Plummets But Hope Isn't Lost Yet for Bitcoin

On this occasion, the SEC said that it is pushing out its decision until September 30. Nonetheless, Bitcoin has still fallen through the ever so important support at $6,800, which is a price level that Bart Smith of Susquehanna has mentioned on multiple occasions as a vital line of "defense" for Bitcoin technicals.

"The current implied daily disaster probability is about 0.4 percent for Bitcoin, 0.6 percent for Ripple, and 0.3 percent for Ethereum", according to the report by Tsyvinski and Liu.

A publicly traded Bitcoin fund, better known as the Bitcoin ETF (Exchange Traded Fund), continues to be considered by the cryptocurrency community as a "holy grail" for reversing the trend and returning a bull market.

For the Bitcoin bulls, the only good news on the day was that sub-$6,000 levels were avoided, with Bitcoin also managing to avoid striking a new swing low, a comfort that numerous other major cryptos were unable to enjoy.

"The selloff witnessed on Bitcoin continues to highlight how extremely sensitive the cryptocurrency remains to the ETF developments", said Lukman Otunuga, an analyst at FXTM. Therefore, if the SEC accepts a Bitcoin ETF, it would be a positive step forward for the cryptocurrency industry which could even potentially pave the way for the mass adoption of cryptocurrencies. He then suggested that Bitcoin "needs to be done as hedge funds first" since it is an "early-stage venture-type security or asset".

Crypto enthusiasts are worrying that the Bitcoin ETFs are not coming anytime soon, but the U.S. Securities and Exchange Commission (SEC) has promised to make final decisions on nine proposed bitcoin exchange-traded funds (ETFs) in the next two months.

This week, the cryptocurrency market has seen a massive decline, losing billions of dollars in value as the price of cryptos across the board continue to plummet. "I think ETFs and Bitcoin still have quite a ways to go".

However, given the recent price plummet, it would seem that there is really need for much emphasis on bitcoin ETFs and a real need for a bitcoin ETF to be approved. "The ETF rejection is the same story we've had for five years", he added.

VanEck first attempted to submit a bitcoin ETF back in March 2017, though this move was dismissed by the SEC nearly instantaneously due to lack of regulation.

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