Bitcoin’s price hit further depths yesterday, as another 11% was shaved off the annual lows, with most alts following its lead. The latest price action means that Bitcoin has now lost 46% of its value in three weeks. The $6,500 level had been solidly maintained for several weeks back in late autumn, back has dropped dramatically since. The painful price fall comes after the SEC confirmed what many in the crypto community expected and delayed their verdict on the VanEck/SolidX ETF until February 2019.
Bloomberg States the Obvious
Bitcoin’s most recent price drop means its value is now on par with that of mid-September 2017, where it lost 30% of its value in 24 hours in the midst of Jamie Dimon labelling it a fraud and China announcing a ban on ICOs. Such viewpoints that are now so established it’s amazing to think they had the impact they did a year ago.
While Bitcoin traders take double digit rises and falls as an occupational hazard, mainstream media outlets once again looked for reasons into the latest fall, with year-end tax related selling being blamed by a Bloomberg technical analyst. Bloomberg also apparently needed a technical indicator called an Average Directional Index to realize that Bitcoin was caught in a “strong selling trend”, something most investors have known since the spring thanks to their ever-shrinking portfolios.
SEC Delays ETF Decision
If a reason were needed for the drop, it’s more likely to be the announcement from the SEC that they have delayed their decision on a Bitcoin ETF until the end of February 2019. Previous delays and rejections have been met with falls in price, but it can be argued this time around that the move was anticipated and the selling pressure was far reduced given market conditions.
There is still plenty of optimism around that the ETF will be granted in February, but Hester Peirce, the SEC commissioner who is known to be bullish on cryptocurrencies, offered a note of caution in a recent discussion on the subject at Digital Asset Investment Forum Wednesday, saying: “…(a Bitcoin ETF) could be 20 years from now or it could be tomorrow. Don’t hold your breath. The SEC took a long time to (establish) Finhub. It might take even longer to approve an exchange traded product.” With no other catalysts other than Bakkt in sight, it could be a long winter, and a long 2019, for Bitcoin fans.