Bitcoin [BTC] price plunges post the SEC’s VanEck ETF announcement

The cryptocurrency market and particularly Bitcoin [BTC] community was eagerly waiting for the U.S Securities and Exchange Commission [SEC] to make the announcement regarding the VanEck-SolidX Bitcoin ETF. This had a huge impact on the value of Bitcoin and other cryptocurrencies. BTC hit its all-time high in the past few weeks, but the recent announcement resulted in a huge disappointment in the community.

On 7th August, the SEC released a statement regarding the Bitcoin ETF. However, it wasn’t the announcement the whole community was waiting for eagerly i.e the decision regarding the ETF. The SEC has decided to postpone the final decision on the ETF from 9th August 2018 to 30th September 2018.

The SEC states that they required more time to decide on whether to approve or disapprove the proposed rule change. The commission has the authority to prolong a decision up to 90 days if they find it necessary. With this authority, the commission has decided to extend the decision by 45 days.

The SEC stated:

“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.”

Cboe BZX Exchange proposed a rule change in order to list and trade shares issued by VanEck-SolidX Bitcoin Trust. The exchange platform filed it with the SEC. The Securities and Exchange Commission received more than 1300 comments regarding this as on 6th August 2018.

The announcement made by the commission led to an adverse effect on the cryptocurrency market. The Bitcoin [BTC] community, in particular, faced a bloodbath as the value dropped below the $7000 mark. Bitcoin [BTC] has dropped by more than 7% in the past 24 hours and is continuing to fall. Additionally, the price crashed from $7100 to $6500 within few hours of the announcement.

Bitcoin [BTC] plunges post the announcement || Source: Trading View

Bitcoin [BTC] plunges post the announcement || Source: Trading View

According to CoinMarketCap, at press time, Bitcoin [BTC] was trading at $6522 with a market cap of $112 billion with a dominance of more than 48% in the overall market.

Aelaosl, a Redditor says:

“First of all we already knew that the Bitcoin ETF would not be approved on the first date. Second, the news we had last month are phenomenal. The price now is lower than before the ETF was filed which is lol. Everyone is selling for no reason because they think everyone will sell for no reason. Basically everyone thinks that everyone else is irrational.”

DelfinGuy, another Redditor says:

“Bitcoin ‘on sale’.”

Romjpn, a Reddit user says:

“Looks like the market is entirely focused on the ETFs now. It’s frustrating for my stash value to be dependant on a decision from the SEC now.”

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