The cryptocurrency market has seen a harsh decline over the past week, due to the delay of the announcement of the SEC on Bitcoin ETF being one of the factors. The announcement has been delayed to September 30, 2018. The delay has led to many investors cashing in on their digital currency, with the market shedding $60 billion. So also there has been an inflow of optimistic investors to Bitcoin as it now owns the 54% of the market share.
Market Shrinks As Some Investors Back Out
The cryptocurrency market has shed cryptocurrency in the worth of $60 billion in the past one week; immediately the SEC postponed their announcement of Bitcoin ETF. The delay led many to sell their cryptocurrency share because many feel uncertain of what the decision of SEC would be in September.
However the delay was not an outright rejection or a plan to reject the Bitcoin ETF completely, but a choice to delay it to reasons known to SEC, which some enthusiasts see as just a wait for the present price advantage to be taken by some in the institution ahead of the boom that will trail the announcement.
Speaking on the situation The CEO and founder of investment firm BKCM, Brian Kelly, said to CNBC that,
“If you’re selling today after this decision, it’s the wrong way to do crypto investing. There is more to this story than just an ETF.,” and he further states “A little spoiler alert: On Sept. 30, they will likely postpone it again because the market’s not ready for it and the SEC hasn’t had all the answers to their questions yet.”
In his opinion, the Bitcoin ETF might still be postponed again on September 30, due to the need for a regulated U.S. cryptocurrency derivatives exchange to come into place before it is approved. The Bitcoin ETF proposed by the Winklevoss twins has been rejected twice before now, the present choice of delay by SEC signals positivity. Meanwhile, the New York Stock Exchange (NYSE), reveals plans to launch a digital assets marketplace on August 3, which will boost the Bitcoin ETF.
The Surge in Bitcoin Market Share
Even as there is a shrink of investors in the market, there has been trusting and optimism on Bitcoin to rise, as the market share has drastically increased in the last one week. This is a testament to the level of confidence that cryptocurrency enthusiasts still have in the market, despite the recent bearish trend and the uncertainty of Bitcoin ETF.