A new cryptocurrency report is in the Bitcoin news lately – this time by a cryptocurrency economics and digital assets company named Element Group. According to the report, the SEC’s delay in approving Bitcoin ETF proposals is the primary reason why the market has become relatively boring in recent weeks.
As two of the Element analysts named Thejas Naval and Kevin Luon wrote and agreed:
“One can argue that the depressed volatility patterns we’re seeing with bitcoin is the market slowly adopting bitcoin as a [Store of Value] SoV,”
Another theory was that Bitcoin’s price discovery mechanism was becoming “more efficient.” In the meantime, Bitcoin’s volatility index remained at 8.04 in January. However, in the last 2 months, this figure dropped down to 2.71% which is why Nalval and Luon agreed that Bitcoin has “ran out of juice” while heading into the fourth quarter.
Meanwhile, many analysts agree that Bitcoin’s price is also dependent on the SEC’s approval or refusal of Bitcoin ETF proposals. This year only, ten ETFs were rejected by the SEC – and the only proposal that remains unanswered right now is the VanEck/SolidX Bitcoin ETF.
What’s interesting is the fact that SEC can extend the deadline of approving the ETF proposals filed on the federal register for up to 20 days.
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