Bitcoin and some other cryptocurrencies have seemingly found some buyers again, as the king of cryptos has seen a strong rally in a very short period of time. In the news last week was the SEC’s rejection of a Bitcoin-based ETF application out forth by the Winklevoss twins.
“On July 26, the US Securities and Exchange Commission (SEC) officially rejected the Bitcoin exchange-traded fund (ETF) application filed by the Winklevoss twins, citing lack of measures in the ETF to prevent price manipulation.
The official SEC announcement read:
“The Commission addresses each of these arguments below. In Section III.B, the Commission addresses BZX’s assertion that bitcoin and bitcoin markets, including the Gemini Exchange, are uniquely resistant to manipulation and finds that the record before the Commission does not support such a conclusion.”
The SEC further emphasized that the proposed ETF by the Winklevoss twins, who oversee a major US crypto exchange known as Gemini, does not have sufficient tools to identify and deter fraud and manipulation that could impose a negative impact on the price movement of Bitcoin.
Almost immediately after the release of the SEC’s statement, SEC commissioner Hester Peirce expressed her disappointment with the decision of the agency to reject the bitcoin ETF filed by the Winklevoss twins, noting that Bitcoin, as an asset, is regulated and matured enough to be worthy of US markets.
“Apparently, bitcoin is not ripe enough, respectable enough, or regulated enough to be worthy of our markets,” Peirce said in a personal statement, referring to an official public statement she published to refute the disapproval of the Winklevoss Bitcoin ETF.”
Although the risk of fraud and manipulation remain at the forefront of regulators’ attention, cryptocurrency markets may be getting closer to becoming more mainstream and becoming more widely available for investment in alternative vehicles. The notion of additional regulatory action is likely a major factor in Bitcoin’s slide as well as declines seen in other currencies. Until there is far more clarity on the regulatory outlook, the sector could potentially have a hard time making any sustainable upside moves.
That being said, however, further gains in Bitcoin could spark more interest across the board and fuel a rise in other currencies as well.
Bitcoin: Bitcoin finally found a bottom-at least for now-for under $6000. The market has since seen some bargain hunters step in, and prices eventually topped out last week at over $8400. The market did stay around the $8200 level for much of the week, and now needs to see some follow-through for the bulls to stay active.
Bitcoin Cash: This crypto has been primarily range-bound again this week, and seems comfortable in the $800-$850 range. The market is pretty much moving sideways on the larger time frames, and as of yet still appears to be lacking any fresh bullish catalyst.
Ethereum: This crypto continues to show little upside in recent action, and remains stuck below previous resistance. Like several other currencies, it is moving sideways on the bigger charts and may simply continue to stay range-bound in the absence of any fresh, bullish inputs.
Ethereum Classic: This crypto continues to show little excitement, and may need to maintain trade over the $18 level before investors get interested. Despite Bitcoin’s sharp rise last week, this currency was not able to get anything significant going on the upside which may be considered bearish.
Litecoin: The dull, sideways price action in this currency has continued this past week as the bulls and bears fight out price direction around the $80 level. The currency may need to see further declines before bargain hunters are willing to step in and buy.
Ripple: This crypto traded in a very tight range for most of the week again, and has not been showing any signs of an impending upside breakout. Like other currencies, it may see sideways to lower prices in the absence of any fresh bullish news. If Bitcoin is able to keep building on last week’s gains, however, it could potentially help to pull the sector higher.