Although the price of Bitcoin and other cryptocurrencies are showing signs of recovery as at the time of writing this article, the value of Bitcoin and most cryptos have taken quite a beating. Bitcoin nosedived to mid-$6,000 and didn’t show any signs of recovery as at yesterday. However, this morning, it’s all green in the crypto markets. This goes to show how volatile the market can be.
What’s Going On?
A lot of analysts and investors have attributed the sharp decline in the price of Bitcoin on the August 8 decision of the United States SEC to delay the approval of the Bitcoin exchange-traded fund (ETF) of VanEck and SolidX.
Under the normal circumstances, most analysts would claim that the delay of the VanEck-SolidX Bitcoin ETF did not come as a surprise and also the predicted call of the SEC to delay the approval is just not enough to cause such a steep fall in the crypto market’s valuation.
Moreover, in leading crypto exchange markets like Korea and other Asian countries, alleged “influencers” and “traders” are establishing a narrative around the VanEck and Cboe Bitcoin ETFs, claiming that the price of BTC can reach previous highs in August, upon the approval of the Bitcoin ETF.
In Asian countries, well-known cryptocurrency researchers and traders with many thousands of followers and subscribers on platforms like the Facebook, YouTube, and Twitter are claiming that the SEC’s call in August can cause an oversized spike within the value of BTC.
This is possible given the enormous hype created by several high-ranking traders and researchers that the market overreacted to the delay within the approval of the VanEck-SolidX Bitcoin ETF.
It is conjointly plausible that the choice of the SEC coincided with an oversized sell-off within the over-the-counter (OTC) market, that specialists believe it to be a minimum of 2 to three-fold more significant than the cryptocurrency exchange market.
Lastly, another potential situation is that an oversized cluster of bears, United Nations agency have meant to sell-off an oversized chunk of BTC over the past few days, found a reason to try to therefore with the choice of the United States of America SEC and initiated a short-run panic sell-off.
Everything Still Boils Down to ETFs
All of the situations are directly or indirectly linked to the SEC’s decision, and without a doubt the period of waiting for VanEck Bitcoin’s ETF caused the value of BTC to fall. Moreover, as we all know, the price of other cryptos reacts to Bitcoin.
So, let’s hope that one of the ETFs gets approval in September.