The price of Bitcoin fell to $25.4K on Monday, its lowest level since June 16th. The sell-off was likely triggered by growing concerns that the US Securities and Exchange Commission (SEC) may not be willing to approve a spot Bitcoin ETF.
SEC Delayed All Bitcoin Spot Applications
The SEC has been reviewing applications for a spot Bitcoin ETF for several years, but has so far delayed all of them till at least the middle of October. The agency has cited concerns about the potential for market manipulation and investor protection.
The SEC’s decision to delay a spot Bitcoin ETF would be a major blow to the crypto industry. A spot ETF would make it easier for investors to buy and sell Bitcoin, which could lead to increased institutional investment and price stability.
Trader’s Enthusiasm Turned Into Fear
The sell-off in Bitcoin also comes amid broader concerns about the global economy. Inflation is at a 40-year high, and central banks are raising interest rates in an effort to cool it down. This could have a negative impact on risk assets like Bitcoin.
It remains to be seen whether the SEC will approve a spot Bitcoin ETF. However, the recent sell-off suggests that traders are increasingly concerned that the agency will not do so. This could lead to further volatility in the crypto markets in the near term.
What To Expect In The Coming Days And Weeks
The crypto markets are likely to remain volatile in the coming days and weeks. Traders will be closely watching the SEC’s decision on a spot Bitcoin ETF, as well as other developments in the global economy.
If the SEC does not approve a spot Bitcoin ETF, it could lead to further selling pressure in the crypto markets. However, if the SEC does approve a spot ETF, it could trigger a rally.
Ultimately, the direction of the crypto markets in the coming months will depend on a number of factors, including the global economic outlook, regulatory developments, and investor sentiment.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.