Cryptocurrency prices fell sharply last Wednesday following the announcement by the U.S. Securities and Exchange Commission (SEC) to delay their decision over the Bitcoin Exchange-Traded Fund (ETF). If approved, the ETF would have given way to a new paradigm as the first of its kind in U.S. history.
The price-fall came after a promising mini bull-run in the past few weeks that gave HODLers and investors renewed hope in the market. The SolidX Bitcoin ETF sponsored by the Solidx Management LLC, in collaboration with Van Eck Securities, experienced further delay after the SEC sought more time to consider the decision. The date for approval or non-approval was pushed to September 30.
The ETF would allow institutional investors to jump on the Bitcoin bandwagon in a legally compliant way. The prospect of the ETF going through caused Bitcoin to start trading above $7,000, but prices fell below $6,300 following the delay announced last week.
The overall cryptocurrency market took a hit, causing its value to contract to $227.8 billion. As of the time of writing, the total market cap is approximately $218 billion. This is according to data from Coinmarketcap.
According to TradingRoomApp’s, Karim Heiden, it is hard to forecast when a Bitcoin ETF approval will occur, but it is inevitable. Going by his market prediction, there is going to be a series of Bitcoin ETF considerations and declines in the short-term.
Each consideration will be accompanied by positive news and reports, adding to a cryptocurrency price-hike. And every rejection will lead to negative analysis, which will also contribute to the slump. The sell-offs during the lows are going to lead to a bearish market as new money comes in to take Bitcoin off ‘weak hands’.
This will occur as big investors look to buy into the informal Bitcoin market while prices are low. For them, buying when prices are at $5,800 has substantial investment returns over a $7,500 price. That said, with every Bitcoin ETF application and rejection, an approval gets closer as companies strive to meet preset conditions.
After Bitcoin ETF Approval
When the SEC approves the first Bitcoin ETF, the inevitable bull-run will follow and thereafter, huge price swings caused by the entry of ‘whales’ with hundreds of millions of dollars to invest. The volatility will happen naturally because of price manipulation. This could go on for years.
According to Karim, Bitcoin prices will most likely reach $58,000 at the $1 trillion dollar market cap. As for the other cryptocurrencies, the report predicts that many will die out because of Bitcoin’s institutionalization advantage. Karim asserts that ETFs based on major digital currencies such as Ethereum will most likely receive approval, causing prices to skyrocket.
Right now, market projection remains bearish until pullback momentum is exhausted.
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