Bitcoin and Ether have exhibited minor price fluctuations and reduced trading volumes this week, leading up to the U.S. Securities and Exchange Commission’s (SEC) anticipated verdict on Ark Invest’s Bitcoin index fund application, set for this weekend.
It is speculated that the regulatory body might request an extension for the review.
Bitcoin, the primary cryptocurrency, has hovered around US$29,000 since mid-July, marking a period of remarkably low volatility, which typically precedes significant price movements.
Similarly, Ether, Ethereum’s native token, has remained just above US$1,800. Over the past week, Bitcoin has seen a 0.9% increase, while Ether has gone up by 0.8%.
Thiago Rigo, an analyst at Titanium Asset, predicts that the SEC might postpone their decision on Ark Invest’s product till at least January 2024.
He suggests this delay arises from the regulator’s recent inclination towards ensuring thorough assessments and considering the broader market impact of such products.
Rigo adds, “The crypto market is likely prepared for a SEC decision delay.
Consequently, this anticipated delay may not disrupt Bitcoin’s current stable state. However, any unexpected response from the SEC would undoubtedly stir market reactions.”
If the ETF applications get an unlikely green light, it could unlock potential value for Bitcoin and boost its price.
Conversely, a denial could foster skepticism, implying regulatory hesitancy about market readiness for such advancements.
Fernando Pereira, a Bitget analyst, highlights current trends indicating a potential price decline.
He cautions, “There are algorithms designed to trigger sales under these conditions. I typically avoid buying until trends look favorable.”
As of the recent update, Bitcoin was priced at US$29,405.89, reflecting a 0.2% drop, while Ether remained stable at US$1,849.51.
The combined market cap of global cryptocurrencies stood at US$1.22 trillion.
Rony Szuster, a crypto-analyst, emphasized that Ark Invest’s ETF decision is imminent given the approaching deadline.
He noted an accumulation of over 5,000 bitcoins by long-term investors, reaching a total of 14.6 million.