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Just as bitcoin was looking as though it was going to break the critical $31,000 price level, the SEC threw a wrench into the works with its rejection of all the latest ETF filings.
Oh no! Another rejection
The crypto market was alive and buzzing once again, looking as though it had finally emerged from a harsh crypto winter on the back of institutional ETF filings that looked as though this time might be approved.
Gary Gensler at the SEC was having none of it. Blackrock, Fidelity et al could be damned. The Biden administration is absolutely determined to try and break the crypto industry, and even if the biggest institutional money in the country wants in, it’s not going to happen on Gensler’s watch.
The news dropped like a bomb onto the crypto market. The Wall Street Journal was first to report it with the headline:
“SEC Says Spot Bitcoin ETF Filings Are Inadequate”
Assuming that Blackrock and the rest had done their homework on the Bitcoin Spot ETF, it was hard to imagine what on earth else might be required by the SEC.
Crypto market plummets
In a matter of seconds bitcoin and the rest of the crypto market plummeted lower. Bitcoin immediately dropped to the exact bottom of its bull flag, made a beautiful touch, and then bounced back. It is currently sitting at the $30,200 price mark, which also happens to be the 0.618 Fibonacci level.
The altcoins fell even more drastically. The Total 3 chart (all cryptocurrencies except BTC and ETH) fell like a stone, losing over 4%, equivalent to around $13 billion in value.
Bitcoin Cash (BCH), probably the coin riding the highest up until the SEC announcement, rapidly fell over 13%, dropping from $314 to $272, before bouncing back around half way to $293.
Was the news as bad as all that?
Senior Bloomberg Analyst Eric Balchunas tweeted out soon after the announcement saying that in his view the news was not as bad as the headline suggested. He said that the SEC was really after the name of the crypto exchange for the “surveillance-sharing agreement” and required more details on SSA.
Hold up a second, this isn't as bad as headline. The key paragraph is deep in story. Basically SEC wants them to name the "crypto exchange" and give more details on SSA. That's understandable, arguably good news. I was under impression they'd have to update that as well. pic.twitter.com/bh9qn65Xh2— Eric Balchunas (@EricBalchunas) June 30, 2023
It does look as though the market is starting to digest this, and if the ETFs aren’t being outright rejected then a surge in the opposite direction might be expected to take place. Hold on to your hats!
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.