Crypto Week Ahead: US SEC Delay On Bitcoin ETF Call Continues To Worry Investors

Over the past seven days, Bitcoin (BTC) price achieved a high of $27,983.01.

Bitcoin (BTC) and other top coins such as Ethereum (ETH), Solana (SOL), and Litecoin (LTC) got a much-needed lease of life after Grayscale won against the US Securities and Exchange Commission (SEC) on Bitcoin spot exchange-traded funds (ETFs). However, the brief streak snapped soon enough last week, when the SEC delayed its decision on BTC ETF applications from a handful of firms. As a result, crypto prices took a hit and crossed into the doldrums yet again, bringing an inevitable lull in price movements and an overall mood of caution among investors. 

Before we proceed further, readers should note that the overall crypto market and coin prices are extremely volatile in nature. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. This article is aimed at helping investors stay on top of the current market scenarios and the biggest events that have already taken place as well as some upcoming occurrences that are worth noting. Investors are advised to do their own research before taking any call. 

Crypto Prices Over The Past Week

Last Monday (August 28), the overall crypto market cap stood at $1.05 trillion. BTC price stood at around $26,000, ETH price stood at around $1,650.

A week later, the overall market cap remained at $1.05 trillion.

DeFi's total volume stands at $2.01 billion, at 9.50 percent of the total market 24-hour volume. In the case of stablecoins, the overall volume stands at $19.77 billion, at 93.33 percent of the total 24-hour market volume. As per CoinMarketCap, the overall market fear and greed index stood at ‘Fear’, at 35 points (out of 100).

BTC dominance, at the time of writing, stood at 48.33 percent.

Over the past seven days, Bitcoin achieved a high of $27,983.01 (on August 30) and a low of $25,447.72 (September 1).

Ethereum, on the other hand, saw a high of $1,739.30 (August 30) and a low of $1,605.62 (September 1).

Crypto Events To Note

The US SEC has decided to postpone its ruling on spot Bitcoin ETF applications until October. These applications were submitted by various firms, including BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets. The SEC initiated its review of these applications last month, encompassing submissions from both crypto-focused and traditional financial institutions. The applicants aim to introduce the first spot bitcoin ETF, a move advocated by proponents who argue that it will facilitate increased retail investment in the Bitcoin market, alleviating the need for investors to set up a wallet or purchase the cryptocurrency directly.

As a consequence of the SEC's postponement of crucial ETF decisions, Bitcoin and major cryptocurrencies have relinquished all the gains made throughout the week. The largest cryptocurrency experienced a decline to below $26,000. 

However, lending some hopeful outlook, analysts from JP Morgan, led by Nikolaos Panigirtzoglou, suggest that following its recent court case loss against Grayscale Investments, the SEC may face pressure to grant approval for various spot Bitcoin ETF applications submitted by multiple companies.

A US Federal court ruled that the SEC must reevaluate its denial of Grayscale's proposal to transform its bitcoin trust into an ETF. The court deemed the SEC's rejection as "arbitrary and capricious" because it failed to provide a clear rationale for treating futures-based Bitcoin ETFs differently from spot-based Bitcoin ETFs.

In their research note, the analysts contend that for the SEC to deny both Grayscale's request and the spot Bitcoin ETF applications, it would necessitate a reversal of their previous approvals of futures-based ETFs. They speculate that such a move could prove to be disruptive and embarrassing for the SEC, making it an unlikely scenario.

In a positive development for Indian digital asset enthusiasts, Yes Bank has unveiled a noteworthy advancement in the realm of digital currencies with the introduction of UPI interoperability on the Reserve Bank of India's central bank digital currency (CBDC) application. This strategic move has the potential to transform the landscape of digital transactions and broaden the accessibility of the Digital Rupee (e₹) throughout the country.

Utilising the Yes Bank Digital Rupee app, individuals now have the convenience of effortlessly scanning any UPI QR code. This enhancement streamlines transactions and enhances the user-friendliness of digital payments, making them more accessible to a broader audience.

What Crypto Traders Are Saying About Current Market Scenario

Mudrex co-founder and CEO Edul Patel told ABP Live, “Bitcoin is currently trading around the $26,000 mark, having experienced a weekend dip to approximately $25,700 before rebounding. The withdrawal of Bitwise's Bitcoin spot ETF application, driven by the SEC's delay, could have influenced market dynamics. Should Bitcoin continue to trade below the $26,000 resistance level, a sustained downward trajectory is possible. Meanwhile, Ethereum is trading at approximately $1,650. In other news, India’s Yes Bank has integrated unified payments interface (UPI) compatibility on the RBI’s Central Bank Digital Currency (CBDC) app. This is a big win towards the mainstream adoption of digital currencies.”

WazirX Vice President Rajagopal Menon offered his take, “Bitcoin faced resistance below the $26,000 mark, retracing recent gains attributed to a favourable Grayscale ETF ruling. The top altcoins' performance remained mixed with minimal fluctuations. Regulatory developments continued to sway market sentiment, underlining the market's sensitivity to external factors. Market participants awaited further clarity on the evolving regulatory framework and kept a watchful eye on wallet activities, which could significantly impact the market's trajectory.”

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.