Bitcoin Makes a Comeback, Reaching $30.1K Amidst Market Volatility
Bitcoin took a momentary dip under $30,000 amid broader market volatility along with pullbacks in altcoins.
Experts believe Bitcoin could continue to see some dips until the SEC decides on the spot Bitcoin ETF applications.
On Monday, July 17, Bitcoin (BTC) and the broader cryptocurrency market witnessed some volatility taking a dip under $30,000 for the first time in a few weeks. However, this was short-lived as the BTC price made a bounceback and is currently trading at $30,049 with a market cap of $583 billion.
Bitcoin, and the broader cryptocurrency market, have seen some pullback since the rally and big gains last Thursday. Bitcoin surged above $31,700 last Thursday following a court ruling that stated Ripple’s sale of XRP tokens was not considered an investment contract.
However, analysts predict that Bitcoin might encounter occasional drops below this level until the SEC makes a decision on approving spot Bitcoin ETF applications submitted by financial institutions like BlackRock. The filing of these applications in mid-June contributed to a significant increase in BTC and other cryptocurrencies as investors sought a potential price catalyst.
Given the SEC’s historical pattern of slow decision-making, it is unlikely that the agency will act swiftly on the spot BTC applications. In the past, the SEC has taken several months to make decisions and has rejected similar applications. Currently, the agency is in the process of gathering information and evaluating the proposals, indicating that it will take some time before any action is taken. Edward Moya, senior market analyst for foreign exchange market maker Oanda, told CoinDesk:
There’s a continued focus solely on U.S. (ETFs). People are not going to be as optimistic until we get a further update that we’re going to get that ETF done in the States. We may see a lot of back and forth before we get that firm sign-off (from the SEC).
Pullback In Altcoins, Will Equity Market Support Upward Momentum?
Ether (ETH), the second largest cryptocurrency by market capitalization, saw a decrease to $1,880, representing a decline of approximately 2 percent within the last 24 hours. Smaller cryptocurrencies, known as altcoins, experienced even greater drops.
Ripple’s XRP, which had a significant surge following a partially positive court ruling in its lawsuit with the SEC, fell by 4.4 percent in the past 24 hours. The native tokens of the Solana and Stellar networks, SOL and XLM, respectively, also saw decreases of more than 4 percent during the same period. ADA, the native token of the Cardano smart contracts platform, is also down by 3.25 percent in the last 24 hours and currently trading around $0.30.
However, it seems that the US equity markets could be providing some support to the crypto market going ahead. Boosted by positive second-quarter earnings reports from major banks, equity markets saw slight gains, with the Nasdaq Composite and S&P 500 increasing by 0.9 percent and 0.3 percent respectively. Bank of America and Goldman Sachs are set to announce their Q2 results on Tuesday and Wednesday respectively.
Reports highlight the progress made by small crypto companies in finding banking partners to facilitate transactions, noting that Customers Bancorp has emerged as a key player following the decline of Signature Bank and Silvergate Capital Corp.
Filed under: Bitcoin - @ July 18, 2023 9:25 am