Virtual currencies have been in a bear trend since the beginning of the current year. Bitcoin and other virtual currencies lost more than 80% of their value with some coins losing almost or more than 99% of their price since their all-time highs.
During the last days, Bitcoin reached new year lows being traded close to $3,400 dollars or less in some exchanges. But not everyone knows why the crypto market reacted in this way.
One of the main reasons might be related to the fact that the U.S. Securities and Exchange Commission (SEC) delayed the approval of the Bitcoin exchange-traded fund (ETF) presented by VanEck.
During this year, the cryptocurrency market has been waiting for the approval of a Bitcoin ETF that would help and allow new investors enter the crypto market. However, the SEC has been rejecting and delaying the approval of several proposals of Bitcoin ETFs. The regulatory agency mentioned that the market was not mature enough for an ETF to be launched.
Some things that the SEC fears are related to low-liquidity, market manipulation and other bad actors in the virtual currency market. Earlier this year, Tether (USDT) was accused of being used to manipulate Bitcoin markets. However, VanEck representative said that Bitcoin is not only resilient but it also operates in a well-functioning capital market.
The SEC informed that they will be taking a decision about a Bitcoin ETF in February 2019. The release of the document did not produce red candles on the market immediately. However, these kinds of negative news have very negative effects on the market.
Joseph Young a crypto influencer, analyst and investor wrote on Twitter:
VanEck Bitcoin ETF delay until February was expected and to be frank, it's common sense. Why would the SEC go out of its way to approve or reject an ETF filing prematurely?
And so no, the Bitcoin price didn't fall because of the ETF delayhttps://t.co/9t7Dp49NSQ
— Joseph Young (@iamjosephyoung) December 7, 2018
He also believes that the price did not fall because of the announcement made by the regulatory agency.
There are other analysts that think that Bitcoin will continue to fall and reach a clear bottom close to 85% or 90% from its all-time high. According to Michael Bucella, a partner at BlockTower Capital said that a year-long ‘distress cycle’ is nearing its climax. Furthermore, he said that the last part of these cycles tends to be more volatile. However, he did not forecast a bottom in the market.
At the time of writing this article, Bitcoin remains as the largest digital asset in the market being traded close to $3,500. It also has a market capitalization of $60.77 billion. In the last 24 hours, Bitcoin was able to register a price increase of 1.63%.