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As reported by NewsBTC on Thursday, the US SEC rejected a revised proposal for a Bitcoin ETF backed by the Winklevoss twins. The market immediately plunged, with Bitcoin and a majority of altcoins posting losses of 4-5% on the day. The rapid movement downwards has led some to ask, "Was this decline really justified or was it an overreaction?"
Bitcoin recovers $ 400 after SEC verdict
As mentioned earlier, the market has not responded to the decision regarding the exchange-traded fund (ETF) backed by Winklevoss. In the hours that followed the publication of a ninety-two-page report outlining the reasons for the rejection, Bitcoin fell to a daily minimum of $ 7,800 from $ 8,200. Although the verdict only directly affects a Bitcoin-based ETF, the altcoins closely mirror Bitcoin, recording similar losses.
Nevertheless, at 15:00 UTC, the cryptocurrency market experienced an influx of volumes of purchase, Bitcoin quickly returning to the pre Many attributed this accelerated rebound to investors collectively realizing that the market's reaction to the SEC's decision was irrational. As Alex Magnus, researcher specializing in cryptocurrency, pointed out, the majority of cryptocurrency investors were not aware of the revision of Winklevoss, as the announcement of the refiling slipped under the radar of most people
. VanEck SolidX depot. Most people did not even know that the Winklevoss ETF was still in play after the rejection of March 17. Commissioner Pierce's dissent seems to have fueled the ETF's new anticipation
– Alex Magnus (@alexmagnusBTC) July 28, 2018
The awareness, or the lack of revision, of the new ETF review, as many have been quick to call it new news rehashed. In short, it became clear that the lack of awareness led to an irrational slide down, as details were initially sparse. That would only make sense if Bitcoin saw a reversal as the market calmed down
Others linked Bitcoin's recovery to the dissent statements made by SEC commissioner Peirce, who issued a pbadionate statement against the verdict:
"The action of the Commission today deprives investors of this choice.I reject the role of guardian of innovation – a very different role from (and, in in fact, incompatible with) our mission of protecting investors, promoting the formation of capital and facilitating fair, orderly and efficient markets, and therefore I disagree. "
Tom Lee: It is positive that Bitcoin "Shrugged Off" The Rejection of the ETF
Although the above rationale is fundamentally based, Tom Lee, the chief research officer at Fundstrat Global Advisors, pointed out that the techniques may have played a role in in the overthrow. In a tweet, Lee wrote :
"This is a sign of a positive change in the crypto that
#BTC basically ignored#Winklevoss Rejection of the ETF If it took place in April-June (more bearish period), the crypto market would have seen a selloff. why the techniques improve. "
Lee also noted that his company" Bitcoin Misery Index ", which uses a variety of indicators to measure market sentiment, is out of the" misery "zone at 39. [19659006] He is 39. So he is recovering and getting out of the area of misery (below 27).
– Thomas Lee (@fundstrat) July 28, 2018
Earlier this year, the Fundstrat badyst noted that the index has reached a low of almost seven years at 18.8, what he saw as a bullish signal. Speaking more about what these seemingly inapplicable numbers mean, he noted:
"The last four times it was below 27 … there was not a single instance with bitcoin not more 12 months later "
As indicated by the statement above, and appearances on CNBC Fast Money, the positive trend observed with this indicator might suggest that Bitcoin will only continue to rise in the medium and long term.
"Strong recovery confirms the bull market"
Following the immediate reaction of the market to the news, Parabolic Trav, a long-time technical badyst and promoter of the cryptocurrency, delivered a Tweet concerning his reflections on the state of the market. While the statement may not look like much, it offers a right punch in the hearts of Bitcoin bears. Trav wrote:
"A vigorous recovery confirms the bull market."
A strong recovery confirms the bull market. $ BTC
– Parabolic Trav (@parabolictrav) July 26, 2018
Assisted by the most recent volume figures of the market, which currently total $ 20 billion in recent years 24 hours, the inversion could be described as "strong recovery" by many badysts. In addition, Bitcoin recovered in a shorter time and then had to go down, indicating that it was not a "half-way" recovery
The market still looks forward to the next decision on the VanEck and Cboe-backed ETF, with many seeing the fate of the verdict still in the air.
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