Key Takeaways:
- According to a Wall Street Journal report, the SEC rejected recent Bitcoin ETF applications.
- BTC price plummeted following the report.
NEW DELHI (CoinChapter.com) — Bitcoin prices dipped after the Wall Street Journal reported that the US Securities and Exchange Commission had deemed recent Bitcoin Exchange Traded Funds (ETFs) applications ‘inadequate.’
The WSJ report cited “people familiar with the matter” to state that the regulator informed exchanges Nasdaq and Chicago Boards Options Exchange (CBOE) that the filings were not “sufficiently clear and comprehensive.”
Nasdaq and CBOE had filed the applications on behalf of asset managers Blackrock and Fidelity Investments. The surge in interest in Bitcoin ETFs helped propel the token’s prices in June. BTC prices rose to a multi-month high of $31,458 in June.
The SEC told the exchanges that the applicants failed to specify with which spot Bitcoin exchange they planned to have a “surveillance-sharing agreement.“
The agreement was part of Blackrock’s filing to share “surveillance” of a spot BTC trading platform with Nasdaq.
Meanwhile, crypto Twitter stated the news was an attempt to manipulate the markets. Pro-crypto lawyer John E Deaton speculated the news was an attempt to lower BTC prices to favor “legacy Wall Street.“
Furthermore, the lawyer highlighted the fact that the SEC approved a leveraged ETF but found spot ETF applications inadequate.
Crypto journalist Alexa noted that while the regulator approved 7 BTC futures ETFs, a leveraged BTC futures ETF, and a short Bitcoin futures ETF, but found problems with the spot BTC ETF. The journalist stated that the SEC rejecting spot BTC ETFs harmed investor interests.
Another crypto trader noted that the SEC indicating the fault in the applications might be a positive sign.
BTC Prices Dip Before Recovering
Meanwhile, the prime crypto price swung wildly following the news hitting the wires, with BTC price dropping nearly 5.63% to a low of $29,508 on June 30. However, prices recovered as bulls fought back, recovering the day’s losses.
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It seems traders are waiting for the market to either settle or make a move in either direction before entering the market. Crypto Twitter’s narrative suggests that investors might try to buy the dip. An uptrend would likely face resistance near $31,100.
Moreover, breaking and consolidating above the immediate resistance might help Bitcoin price target resistance near $32,800 before downside corrections pare gains.
Conversely, if the bears gain the advantage, the OG crypto token price might drop to the 20-day EMA (red wave) support near $29,500. Failure of the immediate support level could send BTC price falling to its 50-day EMA (purple wave) support near $28,100 before recovering.
The RSI for BTC remained near the overbought threshold with a value of 65.97 on the daily charts.
