- The price of Bitcoin fell below $43,000 on Tuesday, despite issuer uproar following the approval of the BTC ETF.
- The SEC commissioner notes that the regulator initially applied different standards to Bitcoin ETP.
- The approval of the BTC ETF has sparked interest due to the long wait, and may have played a role in the regulator’s Account X hack.
The Bitcoin ETF approval has likely disappointed BTC holders who were anticipating a massive rally in the underlying asset. The SEC’s Hester Peirce points out that the regulatory body took years to approve an exchange-traded Bitcoin trading product, and that likely fueled the hype surrounding ETF approval in the community.
Bitcoin’s price action was restricted below $43,000 on Tuesday as the asset failed to break through the resistance at $43,418. BTC is likely to remain within the range unless the asset sees a daily candle close above $43,400.
Read also: Bitcoin bulls pause at $41,700, BTC price likely to start recovering soon
Daily Digest of Market Movers: Bitcoin ETP is creating a buzz, the SEC Commissioner commented
- The US financial regulator, the Securities and Exchange Commission (SEC), treats Bitcoin exchange-traded products (ETPs) differently when compared to other products, due to the underlying assets.
- SEC Commissioner Hester Peirce told Coin Stories Podcast host Natalie Brunell that the regulator’s different treatment of the BTC ETP would likely create buzz around the approval of ETFs.
- The SEC finally approved ETFs when a D.C. court forced the regulator’s hand, questioning why a Bitcoin ETP was treated differently because of the underlying asset.
- Commissioner Pierce points out that Bitcoin, as a new asset, took longer for the agency to approve an exchange-traded product because that brings the securities product to a large number of investors.
- Commissioner Pierce noted that Chairman Gensler was the deciding vote on Bitcoin ETF approvals and commented on the SEC’s “X” account being hacked.
- The regulator believes that the hype surrounding the event may have played a role in the hack, and noted that authorities are currently looking into the matter.
- The Bitcoin ETF approvals may have disappointed a large number of market participants because they did not fuel a rally in Bitcoin prices and, instead, turned out to be a “sell-the-news” event.
Technical Analysis: Bitcoin price is still within a range, and Bitcoin is trading below $43,000
Bitcoin price is $42,868 on Binance at the time of writing. The asset remained within a range below the $43,000 level on Tuesday. BTC price action has disappointed market participants as the asset remains restricted below the major resistance at $43,418, which is the lower bound of the bearish imbalance zone, as shown in the price chart below.
BTC price is facing resistance at the 50% Fibonacci retracement level at $43,074, from BTC’s decline from November 2021 to November 2022. The second resistance is the lower limit of the imbalance zone between $43,418 and $45,607. Once the gap is closed, Bitcoin price will likely resume its downward trajectory.
BTC/USDT one day chart
Frequently asked questions about cryptocurrency prices
Token launches such as Arbitrum’s ARB airdrop and Optimism OP impact demand and adoption among market participants. Listings on cryptocurrency exchanges deepen asset liquidity and add new participants to the asset network. This is usually bullish for digital assets.
A hack is an event where an attacker takes over a large amount of assets from a DeFi bridge, exchange hot wallet, or other crypto platform via exploits, bugs, or other methods. The scalper then transfers these tokens from exchange platforms to eventually sell the assets or swap them for other cryptocurrencies or stablecoins. Such events often involve mass panic that leads to widespread selling of affected assets.
Macroeconomic events such as the US Federal Reserve’s decision on interest rates affect risk assets such as Bitcoin, mainly through the direct impact they have on the US dollar. An increase in interest rate usually negatively affects the prices of Bitcoin and altcoins, and vice versa. If the US dollar index declines, the risk assets and associated leverage become cheaper, which in turn causes cryptocurrency prices to rise.
Halvings are typically considered bullish events because they halve the block reward for miners, limiting the supply of the asset. In constant demand if supply decreases, the price of the asset rises. This has been observed in Bitcoin and Litecoin.