August continues to be a difficult month for Bitcoin as well as the general cryptocurrency market. Today (August 8, 2018), the top-ranked cryptocurrency has continued to decline, dipping below $6,500 or the first time in almost a month. Most altcoins have also posted significant price dips today as well.
Bitcoin Continues its Downward Spiral
After experiencing a mini price rally in July to claw back to $8,400, BTC has fallen in August, ultimately eroding the gains of the previous month. Yesterday, the United States Securities and Exchange Commission (SEC) delayed its decision on yet another BTC ETF. As expected, the price immediately tumbled, dropping more than $250 in a matter of minutes.
The downward slide has continued today with more selloffs in the market. BTC even briefly fell to the $6,100 price level but quickly moved up slightly above the $6,300 price mark. At the time of writing this article, Bitcoin has shed more than 8 percent of its market price in the last 24 hours.
Apart from Bitcoin, the majority of the market has also posted huge losses today. All top ten altcoins are currently in the red with MIOTA, EOS, and XRP leading the way in 24-hour price percentage declines.
Bitcoin ETF Delay is Causing Market Frustration
Much of the current sweeping losses in the market has been attributed to the stagnation caused by the SEC’s reticence to approve a BTC ETF. The general sentiment in the market is that the lack of a Bitcoin ETF leaves many unanswered questions as to the future of the cryptocurrency industry.
Commenting on this issue, eToro analyst, Matthew Newton said:
“A green light for the bitcoin ETF would fire the starting gun on a race among institutional investors to cash-in on this new product. The market is therefore rightly frustrated by the delay to the decision.”
According to Newton, while investors continue to be frustrated by the developments on the BTC ETF front, the SEC is unlikely to approve any filing unless the necessary custodial tools are in place. Thus, Newton believes that critical stakeholders will soon have to commit fully to developing robust cryptocurrency storage options.
Bitcoin Hashrate Reaches Stratospheric Heights
In a related development, both the Bitcoin market dominance and the BTC network hashrate have increased dramatically over the last few weeks. This increase is surprising given the significant decrease in Bitcoin’s price.
Commenting on the matter, David Spencer, the COO of Blockbid said:
“Hashrate is one of the key indicators of the Bitcoin’s network strength and I’m extremely surprised to see that with the steady increase in hashrate we have seen the Bitcoin price drop back down to $7,000. Bitcoins volatility will always play a factor in its price, but hopefully Bitcoins price will soon start following its growing hashrate.”
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