CryptoWatch: Delayed bitcoin ETF could lead to new 2018 price low, says analyst

CryptoWatch: Delayed bitcoin ETF could lead to new 2018 price low, says analyst

Bitcoin prices opened sharply lower Wednesday after the Securities and Exchange Commission delayed its decision on the proposed bitcoin-related exchange-traded fund submitted by VanEck and SolidX.

The world’s biggest digital currency has lost as much as 10% since that news broke Tuesday afternoon, trading from above $7,100 to an overnight low of $6,401.30. The price of a single bitcoin BTCUSD, -6.04%  last changed hands at $6,466.83, down 5.9% since Tuesday at 5 p.m. Eastern Time on the Kraken exchange.

Read: SEC delays decision on VanEck-SolidX bitcoin ETF

The delay is a further blow for the digital asset community that had hoped a ruling in favor before the mid-August deadline—45 days after the latest submission to regulators. However, onlookers will now have another seven weeks in limbo.

“Accordingly, the Commission designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change,” the SEC said.

One analyst who had remained skeptical despite the July rally in bitcoin says Tuesday’s news opens up the possibility of a new low for 2018.

“It is hard to find anything positive to say about bitcoin,” wrote Jani Ziedins of CrackedMarket in a morning blog post. “Failing to hold $8k, it didn’t take long for us to crash under $7k as any hope brought about by the latest rebound vanished faster than it appeared. If we cannot retake $8k support over the next few days, expect us to tumble through $6k support and start making new lows.”

Read: Barry Silbert says bitcoin put in its 2018 low, but 99% of cryptos are worthless

Crypto market cap hits 2018 low

The overnight move in bitcoin has pushed the value of all cryptocurrencies to a new low for 2018, according to data from Coinmarketcap.

Plagued by exchange hacks and regulatory concerns, digital assets have been in a continual decline for the most part of 2018, falling to $230 billion Wednesday, its lowest level since Nov. 7, 2017, and $600 billion off its all time high.

Despite bitcoin’s struggles, its share of all cryptocurrencies has risen 10% in 2018 and now accounts for 48.6% of the market.

Altcoins plunge

Altcoins, or coins other than bitcoin, bore the brunt of the decision, with all showing significant losses early Wednesday. Ether ETHUSD, -6.30% is down 5.2% to $364.46, Bitcoin Cash BCHUSD, -10.29% is trading lower by 9.7% at $607.70, and Litecoin LTCUSD, -8.90% is down 8.5% at $63.50. Ripple’s XRP XRPUSD, -13.29% is the worst-performing of the major altcoins, trading to 34 cents, down 11.5%.

Bitcoin futures have followed spot markets lower. The Cboe Global Markets Inc.’s August contract XBTQ8, -5.91%  is trading 5.8% lower at $6,455 and the CME Group Inc.’s August contract BTCQ8, -7.87% is down 8% at $6,425.

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