From midnight yesterday to early morning this morning (1st), Bitcoin suddenly fell below $26000 and fell back to the starting point on August 29th overnight. What happened?Why did Bitcoin plummet? SEC Delays Review of 7 Spot ETFsWhat happened when Bitcoin suddenly fell below $26000?Why did Bitcoin suddenly plummet? Many foreign media outlets generally believe that it is related to the US Securities and Exchange Commission's decision last night to postpone the review of 7 counterfeit Bitcoin spot ETFs, including the application of fund giants such as BlackRock, Fidelity, and Invesco, which will be postponed until October to decide whether to pass
From midnight yesterday to early morning this morning (1st), Bitcoin suddenly fell below $26000 and fell back to the starting point on August 29th overnight. What happened?
Why did Bitcoin plummet? SEC Delays Review of 7 Spot ETFs
What happened when Bitcoin suddenly fell below $26000?
Why did Bitcoin suddenly plummet? Many foreign media outlets generally believe that it is related to the US Securities and Exchange Commission's decision last night to postpone the review of 7 counterfeit Bitcoin spot ETFs, including the application of fund giants such as BlackRock, Fidelity, and Invesco, which will be postponed until October to decide whether to pass.
According to the market situation on the Coin Exchange, as the news spread, Bitcoin immediately fell by nearly 5% from its high of $27155 to its lowest point at $25655, a cumulative decline of 1500 points. Many investors in leveraged contracts are facing losses as a result. In the past 24 hours, the cryptocurrency market has had approximately 39000 outflows, with a total outflows of $130 million. Long sellers alone have outflows of $107 million.
Delaying the review is not surprising, but the market reaction is fierce
However, the SEC's decision this time was not surprising. The Bitcoin spot ETF application submitted by Ark Fund was postponed for review in August of this year.
The review deadline for Bitwise's spot ETF was originally set to expire on September 1st US time, but due to the proximity of Labor Day (9/4) in the United States, the market had generally expected the SEC to postpone the review.
However, due to the recent release of news that some industry insiders may have passed the review, it seems to have brought too much expectation to the market. Mike Novogratz, CEO of Galaxy Capital, a cryptocurrency investment management company, once said that the review of Bitcoin spot ETFs is only a matter of time, and there will be news at the latest within 6 months; Bloomberg analysts also predict that the probability of Bitcoin spot ETFs passing this year is 75%, as the grayscale victory brings hope.
In the face of Bitcoin's sharp decline, the news of Grayscale's victory in the lawsuit has boosted Bitcoin in the short term, but the uncertainty of the "Bitcoin Spot ETF" narrative will continue for a longer time, as the SEC still holds the idea of taming the cryptocurrency field. The US District Judge ruled that the SEC's reasons for rejecting the grayscale application were insufficient, and therefore the SEC needed to conduct a new review. However, the SEC could still decide not to approve the grayscale application to convert GBTC funds into Bitcoin spot ETFs.
How long can the SEC delay Bitcoin spot ETFs? Starting from the initial application, the SEC can have up to 240 days to decide whether to approve or reject, and officials will basically use seeking market comment or through the review period system to postpone the review as much as possible.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
