Bitcoin tumbles as SEC delays decision on ETF applications
- On 31 August, the Securities and Exchange Commission announced its decision to extend the date within which to review ETF applications.
- This has further dampened sentiment and caused BTC to crash to a three-month low.
Bitcoin [BTC] slipped under $26,000 as concerns mounted over whether the Securities and Exchange Commission (SEC) will grant its approval for spot Bitcoin exchange-traded fund (ETF) in the U.S. despite the recent ruling in the Grayscale matter.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
In reaction to the ruling, on 31 August, the regulator announced its decision to extend the period within which to review all spot Bitcoin ETF applications filed by BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise and Valkyrie Digital Assets.
Following this news, the price per BTC, which had traded above $27,000, immediately dropped and has since fallen by 5%.
The regulator’s decision to designate a longer period to review all pending ETF applications before it has led many to believe that the SEC might not give its approval despite the Grayscale victory.
In a recent report, digital asset investment firm CoinShares found that BTC accounted for 87% of all funds removed from all digital asset investment products between 21 and 25 August,
“Due to the increasing acceptance that a spot-based ETF for Bitcoin in the US is likely to take longer than many expect, with recent delays being announced by the SEC.”
Traders seek to reduce exposure
At press time, the coin traded at $25,778. With the market largely unsure of the coin’s next price movements, its Bollinger Bands, observed on a D1 chart, suggested that BTC remained significantly prone to significant price swings.
Also, the coin’s price trended closer to the lower band of the indicator, suggesting that selling pressure continued to outweigh accumulation. Key momentum indicators positioned below 50 confirmed this.
At press time, BTC’s Relative Strength Index (RSI) was southbound at 35.44. Similarly, its Money Flow Index (MFI) was spotted at 37.85.
Signaling increased liquidity exit amongst daily spot traders, the coin’s Chaikin Money Flow (CMF) returned a negative value of -0.05 at press time.
How much are 1,10,100 BTCs worth today?
A value below the zero line is a sign of weakness in the market, as it suggests a liquidity flight, which might otherwise propel the value of an asset if kept in the market.
On the futures markets, BTC’s open interest continues to fall. Data tracked by Coinglass showed that it has fallen by 12% since 30 August. At press time, the coin’s Open Interest was $10.28 billion.