The cryptocurrency market doom and gloom continues and the cryptocurrency market cap has now hit a new lowest point inn 2018. After starting the year reaching an incredible $813 billion according to CoinMarketCap, the cryptocurrency market has failed to hit the highs if the 2017 bull run.
The Cryptocurrency market cap low for 2018 was previously hit on June 29th, according to CMC, at a figure of $233 billion. The markets did climb approximately $70 billion to finally breach the $300 billion mark as investors became hopeful of the next bull run, only to see the markets fall by a further $80 billion. The markets hit the official lowest point of $220 billion one 8th August, 2018, although experts are predictiong that the markets could plummet further.
Will the bear’s continue?
May of the altcoins are now down to around 85% -90% of the price they were back I late December/January during the bull run. May have attributed this most recent price decline to the fact the SEC have delayed the decision o the Bitcoin ETF to mid September. VanEck and SolidX submitted a bitcoin ETF request which is currently being reviewed by the SEC.
The SEC have recently declined an ETF request by the Winklewoss Twins and owners of the Gemini exchange. Many have speculated that the proposal by VanEck and SolidX will be declined due to the SEC postponing their decision until September. It is believed that this action from the SEC has caused the markets to slump.
BKCM CEO Brian Kelly discussed this on CNBC’s fast money section, stating:
“It [bitcoin] has had a tremendous run off of $5,800, and that was all really because people thought there was going to be a bitcoin ETF. The SEC came out and postponed that decision. A little spoiler alert, on September 30, SEC will likely postpone in again, because the market is not ready for it and the SEC hasn’t had the answers to their questions yet.”
Cryptocurrency markets are far more open to be driven by rumours and news given the 24 hour nature of the markets. Unlike with traditional markets, cryptocurrencies are traded around the globe 24 hours a day 7 days a week. These additional hours leaves the markets far more susceptible to volatility given that investors can buy and sell into news and rumours in real time.
It seems as the general perception is that the SEC is either going to decline the Bitcoin ETF proposal or at least delay it further until the markets are deemed ready. We will be sure to keep you updated on the situation.
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