Sunday, 17 February, 2019

Stop ‘Overreacting’, Crypto Hedge Fund Vet Tells Bitcoin Investors

Stop ‘Overreacting’, Crypto Hedge Fund Vet Tells Bitcoin Investors Stop ‘Overreacting’, Crypto Hedge Fund Vet Tells Bitcoin Investors
Nellie Chapman | 11 August, 2018, 19:21

Before the announcement by the SEC hit the market, bitcoin had just managed to track back its way to above $7,000 and was trading just a little shy of $7,100, having found a support level at $6,900. The decisions are set to be made by September 15.

The SEC had been due to issue a ruling on a proposed Bitcoin exchange traded fund (ETF). This became especially true after last month's denial of an ETF proposed by the Winklevoss Twins (and owners of the Gemini exchange).

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. That is now "the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SRCboeBZX-2018-040)".

Over $9 billion has been completely erased from the cryptocurrency space, and it appears bitcoin isn't alone in its descent.

Nonetheless, some analysts are viewing the recent decline as a retrace back to a consolidation price of $6,000 or below, which the digital currency breached on June 24.

According to him, cryptocurrency investors should focus on Bakkt instead of Bitcoin ETF.

As aforementioned, altcoins followed the foremost digital asset, with cryptos like XRP and Bitcoin Cash (BCH) actually outperforming Bitcoin by upwards of 1%.

One commissioner, Hester Peirce, dissented from that decision, later telling CoinDesk in an interview that the move to block a bitcoin ETF is a disservice to both investors and innovators. Ethereum also lost around 8% to sink well below the $400 level which is a psychologically significant mark and was trading at around $370 at press time - again a level not seen since 2017. Additionally, the firm will offer institutional investors a physically-settled bitcoin futures product, providing them with access to a regulated cryptocurrency custodian.

The markets didn't react well to the SEC delaying its decision on Tuesday. "The SEC has been very cautious with an ETF".

The same report noted that the concept of an ETF goes against bitcoin creator Satoshi Nakamoto's original proposal to remove middlemen financial institutions that have the "inherent weakness" of the trust-based model, adding that the token therefore doesn't need one to maintain value.