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Home / Business / What caused Bitcoin to sink to a new year low? Factors and trends

What caused Bitcoin to sink to a new year low? Factors and trends



If optimists thought it could not get any worse, it did. In the past 24 hours, Bitcoin (BTC) had suddenly seen another bearish market fever between $ 3,800 and $ 4,200 after a week, as the asset moved in faster Result fell below 3,700, 3,600 and 3,500 US dollars. BTC even set a new year low during the recent sell off, passing Coinbase into a bearish spasm at $ 3,350.

Resurgent selling led retail investors into a relentless uproar, a plethora of industry participants asked what bears could do – the million-dollar question that kept everyone occupied.

SEC Delayed Decision on Bitcoin ETF … Again Again

According to previous reports by NewsBTC a number of representatives of VanEck, SolidX and CBOE The Bitcoin Exchange Traded Fund (ETF) team recently met with the US Securities and Exchange Commission (SEC) together. At this recent event, the second of its kind, VanEck's digital asset team, led by Gabor Gurbacs, has consulted with the Economic Risk Analysis division of the US entity on a crypto-based ETF.

Related: Van Eck's Chief Strategist Sees Multi-billion Dollar Investment in Bitcoin ETF

The hopefuls drew attention to a 62-piece sliding deck that outlined the proposed vehicle and the reasons for its possible approval. Van Eck's representative, who did everything he could to alleviate the SEC's fears of manipulation, low liquidity, and bad actors in crypto markets, told financial supervisors that Bitcoin was not just "resilient," but was working in a "well-functioning capital market."

VanEck even praised CBOE's commercial infrastructure, with which the instrument should be paired to beat the SEC for its speed, security and ability to comply with local financial legislation.

But even after the report, the SEC had postponed its decision on the petition for the umpteenth time and in the midst of a cryptobar market. In a document released on Thursday afternoon, which was stamped by the SEC, the government agency claimed that it would exercise its right to postpone a ruling on the application until February 27, 201

9.

Although the publication of this document has not directly caused red candles, such a decision has probably caused some anxiety among naive investors. Speaking to Bloomberg about the impact of the negative industry trend, Timothy Tam, CoinFi CEO, said:

"The mood in the [crypto] market is really bad, every negative message has an exponential effect."

However, I have chosen Twitter to discredit the feeling that the SEC's recent ruling has affected the market overall. On Twitter, a NewsBTC editor, Joseph Young, said the document was "expected" and "common sense." BTC did not stumble under $ 3,500 due to the 81-day delay.

Nonetheless the multiyear Bitcoin ETF saga, which has stuck with Krypto through thick and thin, is likely to remain an industry-wide flavor of the predictable in the future, so to speak.

Analysts claim the bottom is not in

While opinions about the delay in the Bitcoin ETF and its impact on the market are mixed, some analysts claim that BTC has not established its long-term low, even after a drop of 83% from its all-time high.

Michael Bucella, partner of the industrial warehouse BlockTower Capital, claimed the crypt's almost a year of "distress cycle" is nearing its peak. Goldman Sachs' former manager, referring to BTC's historic price volatility, pointed out that the most recent but most volatile short-term downturn are the most volatile ones. And while he was only hesitant to predict a low point, Bucella clearly emphasized that BTC is not yet busy with BTC.

Vinny Lingham, CEO of Civic, recently issued a similar comment, claiming that BTC was within range between $ 3,000 and $ 5,000 for months, before adding that a ramble below the previous price level was not within the range of possibilities lies. Lingham, known for constantly crying out for a Crypto Winter, claimed that Bitcoin's narrative had been misunderstood over time, allowing emerging blockchains to gain the first of the crypto industry.

Though Commentators Have not Come After a consensus on the point at which BTC bottomed out, it is obvious that the screams for "lower lows" are still prevalent.


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