The price of Bitcoin reversed this week’s peaks, with the SEC ruling in the US threatening further price pressure…
The brief spike in the price of Bitcoin came and went in the course of 24 hours this week. Following scheduled maintenance on the BitMEX trading platform on Tuesday, the price of Bitcoin suddenly rocketed from just below $6500 to just below $6900. As BitMEX came back on board, so the price began to fall again, and some 24 hours on, Bitcoin now finds itself back where it started earlier this week. The cryptocurrency is currently trading, at the time of writing, at $6451.
As we reported yesterday, too, when the price spiked, not everyone did very well out of it.
The price drop at this stage looks like a simple reversal of the aforementioned spike. But now a bigger issue is coming into play, with the news that the American Securities & Exchange Commission has rejected applications for nine exchange-traded funds (ETFs). These would have been Bitcoin-based, and the idea was to build an ETF based on cryptocurrency, that in turn would bring the likes of Bitcoin a little bit closer to broader acceptance.
Two of the ETFs came from ProShares, one from GraniteShares and five from Direxion. More ETFs are due to be ruled on in the months ahead, but things don’t look too positive there at the moment. There seems little appetite from the SEC to approve them.
The immediate impact on the price of Bitcoin when the news landed was a small fall, but nothing overly dramatic. However, the next 24 hours will give a clearer picture as to how the market is going to react, with many expecting that cryptocurrencies across the board are looking at further falls.