Crypto Rumor Controversy: SEC Insider Trading Claims Over Bitcoin ETF Market Manipulation Delays
Claims of SEC Insider Trading – Are They True?
In an attempt to account for Bitcoin’s August 4th price drop, one source claimed that the “Sec engage[d] in insider trading over the bitcoin ETF decision.”
The Securities and Exchange Commission (SEC) is a regulatory body that oversees the securities markets and protects investors. It also handles claims and litigation concerning insider trading – it does not actually perform insider trading and this is because insider trading is an act committed by individuals who have access to nonpublic information about a company and who then use it to their advantage when trading stock or other securities.
As a regulatory body, the SEC cannot commit insider trading. More importantly, it is an act that the agency prosecutes against.
Now, the question that arises is what can account for Bitcoin’s price drop on August 4th.
There are a few possibilities. First, those who follow the crypto space may have realized the misinformation concerning Starbuck’s plans to allow bitcoin as a form of payment at its chain. Second, the market may have started reacting to the SEC’s decision to delay its ETF decision, which it released the day before. Second, it could be that bitcoin was also reacting to the OTC market, which exhibited unusual behavior that may have caused large sell orders to be liquidated.
Bitcoin Price Drops To $6,180 And Market Hits 3-Week Low
The Bitcoin bulls are suffering right now as the Bitcoin price plummeted after taking a major downward pivot on this Wednesday. Because of this, the token has now reached a three-week low point.
After spending most of the morning trading near $6,500 USD, the levels of the market were unable to be properly sustained and the token took another plunge of about $245 USD. At the time of this report, the price of the token had reached a low of $6,180 USD on Bitfinex.
Bitcoin was entered in red since the US Securities and Exchange Commission (SEC) has delayed the announcement of the ruling on the VanEck/SolidX Bitcoin ETF, which now will be decided at the end of September.
While most analysts have predicted that the Bitcoin ETFs will make the price of the token explode again, the SEC is the major obstacle in the way of this happening and the price shows the fear of the investors that the Bitcoin ETF is not approved in 2018, even if several major investment firms have predicted that the ETFs will eventually be approved this year.
However, the bears took the market today and clearer heads did not prevail as many people started to sell Bitcoin and the price dropped as a result.