Bitcoin tumbles below $6,500 on delayed SEC decision

Bitcoin tumbles below $6,500 on delayed SEC decision

Arthur Hayes, co-founder of Bitmex, predicted in July that the Bitcoin (BTC) price should not have any trouble hitting the $50,000 mark by the end of 2018, arguing his forecast on the basis of Bitcoin ETFs approval.

The application received positive feedback, and the SEC later announced it was looking into newer, less stringent legislation that would make it easier to apply for open-ended ETFs.

He made his comments to Traders Magazine after Tuesday's SEC decision to postpone a ruling on whether to approve the SolidX bitcoin Shares ETF for trading on The Chicago Board Options Exchange. There are multiple entities applying for an ETF and one of them is the exchange Cboe BZX, whose proposal was recently rejected by the SEC.

The news has not only hit bitcoin as nearly every other cryptocurrency has plummeted losing roughly 5% to 15% in the last 24 hours and have all broken every support level they had found in the last couple of weeks. The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change. Additionally, the top 20 cryptocurrencies by market cap have shown massive losses in the last day and a half, losing more than 14% of their value in that time.

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For the Bitcoin bulls, the only good news on the day was that sub-$6,000 levels were avoided, with Bitcoin also managing to avoid striking a new swing low, a comfort that numerous other major cryptos were unable to enjoy.

Bitcoin was down 5.6 per cent to $6,484 as of 8:19am in NY, recovering from a 7 per cent drop earlier while extending its 2018 decline to 55 per cent, according to Bloomberg composite pricing. NYSE will provide institutional investors with access to a regulated crypto custodian by offering than with physically settled Bitcoin futures products. The SEC explains that the former did not meet the requirements to ensure that their ETF is created to protect investors from fraudulent and manipulative practices.

In an official report entitled " Blockchain and Digital Assets: US Equity Research, " Canaccord researchers Michael Graham and Scott Suh have now written that a Bitcoin ETF in the US is expected to arrive in 2019.

In an attempt to account for Bitcoin's August 4 price drop, one source claimed that the "Sec engage [d] in insider trading over the bitcoin ETF decision". "I think the SEC has been very cautious with an ETF". Of course, the SEC may delay a final thumbs up or down by an additional 240 days if deemed necessary.

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