SEC Rejects Bitcoin ETF, Again

FXOpen

Today the U.S. Securities and Exchange Commission rejected the Winklevoss ETF again. Last year in March the SEC already rejected this ETF after delaying the decision as long as it could. But in June the twins submitted a proposed rule change to the ETF, which is now also rejected. Due to the importance of this decision we will change our usual format for Thursday from covering ETH and Dash to BTC and ETH. Don’t worry though, we’ll come back to Dash next week!

Bitcoin Drops on ETF Rejection

Bitcoin prices dropped over 5 percent on the news. The reasons for the rejection echo earlier sentiment by regulators about ‘fraud and manipulation of bitcoin, particularly since this is done in a largely unregulated offshore market.’ The agency added that more than three-fourths of the volume in bitcoin occurs outside the United States, and that 95 percent of the volume occurred on non-U.S. exchanges.

SEC Rejects Bitcoin ETF, Again

On the technical side we are still in a bullish trend with the breakout above $6,840. Today’s news should worry the bulls as the rally was underpinned by speculation about possible ETF approval in August. With today’s decision and the reasons for the rejection being centered on the bitcoin markets as a whole and not this particular application, that ETF seems dead in the water as well.

However the bears will need a break below $6,646 dollars to end the current uptrend. A move below the $6,000 mark is needed to start a downtrend in prices. On the picture above you can see more potential support and resistance levels. On the weekly chart bitcoin is bearish. The monthly charts is holding onto the bullish bias.

Ether Still in Downtrend

Ether was positively affected by today’s SEC decision, at least versus bitcoin. While ETH/USD is down around 3%, ETH/BTC is up by around 1 percent since the news came out. Ether along with many alts was sold in the days prior as speculation heated up about a possible approval of a bitcoin ETF.

SEC Rejects Bitcoin ETF, Again

Still, ETH/BTC remains in a downtrend on the daily charts, as you can probably notice from the pic above. A breakout above 0.07168 BTC is needed to end the bear market while a breakout above the 0.07292 BTC swing high would start a new rally. On the longer-term charts there’s no change, Ether is range-bound on the weeklies but bullish on the monthlies.

Trade Bitcoin on FXOpen Crypto accounts

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

The Price of Ethereum Rises Ahead of SEC Decision Bitcoin Price Hits a Month's High, Breaking Key Resistance April Became the Worst Month for BTC/USD Since November 2022 Bitcoin Price Bullish after Halving-2024 ADA Drops to Last Place in the Top 10 Cryptocurrencies

Latest articles

Commodities

Can Last Week's Gold Price Rally Be Replicated?

Gold holds a particularly exceptional status among precious metals. Whilst it does have some use in the manufacturing of consumer durables and electronic products ranging from alloy compounds in wedding rings to terminals for connecting electrical cables in audio equipment,

Forex Analysis

USD/JPY Analysis: The Market is Indecisive Near Its Peak Since May 1

As the USD/JPY chart shows today:

→ The price is in an upward trend (indicated by the blue channel) that has been relevant since the beginning of 2024.

→ On Thursday, May 23, the exchange rate nearly reached 157.2 yen

Analytical NVIDIA Stock Forecast for 2024, 2025 – 2030, and Beyond
Trader’s Tools

Analytical NVIDIA Stock Forecast for 2024, 2025 – 2030, and Beyond

NVIDIA's stock has seen remarkable growth, driven by advancements in AI, data centres, and emerging technologies. This article provides a comprehensive analysis of NVIDIA’s stock outlook for 2024, 2025, and the next decade. Join us as we explore detailed

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.