What’s up with cryptocurrency in July and August 2018?





What’s up with cryptocurrency in July and August 2018

Cryptocurrency market has greatly been on the down trend with Bitcoin price together with accompanied altcoins falling from the huge surged of 2017 when Bitcoin hit $19,500 in January and Ethereum up to $1700 to current state of $6447 and $299 respectively as at the written of this article. 

The crypto market is highly volatile which is subject to rise and fall in prices, but the market continued in downward trend where bitcoin price when down to $6252 in February before the next boost of to $11500 in March after a week based on news of established financial giant (institutional investors) looking to get in on bitcoin and altcoins, couple with a raft of positive regulatory news around the world, before subsequently fell back to $6850 in April and $9624 by May, $6171 by June, $8183 by July and finally $6447 as at the entry of this article. 
 
In May the U.S. Justice Department opened a criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies. The investigation focused on illegal practices that can influence prices – such as spoofing, or flooding the market with fake new orders to trick other traders into buying or selling, which about further emphasis on the CBOE Bitcoin ETF.
 
Cryptocurrency after a brief recovery picked up in its current market crash with massive bloodbath started in late July 2018 as a result of SEC rejection of Bitcoin ETF (exchange traded fund) from Cameron and Tyler Winkevoss for the second time, after previous several delayed. 
 
ETF (Exchange Traded Fund) – is a passive investing instrument that would track the Bitcoin benchmark index and replicate its performance, allowing people with brokerage account to invest in crypto without the challenges of buying, storing and securing it. In order for bitcoin to be available to a larger group of investors, it needs to be approved by SEC (Security and Exchange Commission).
 
In an order published on August 7, official at the agency wrote that they were given themselves more time to deliberate on what would be the first exchange-traded product of its kind in the United State, and was as well shifted to September 30, 2018 as a date the commission shall either approve or disapprove, or institute proceeding to whether to approve or disapprove, the proposed rule change of CBOE.
 
The bitcoin Exchange-Traded Fund (ETF) by Cameron and Tyler Winkevoss is believed to key in massive bullish for bitcoin’s price and further legitimize bitcoin, allowing several asset managers currently yet included to participate in the asset class. The major key concern of the Security Exchange Commission (SEC) against the Bitcoin ETF is that the underlying bitcoin markets are not demonstrably resisted from manipulation, and are mostly unregulated. The CBOE bitcoin ETF proposal is vastly superior to ETF proposal because it addresses most of the concern the SEC has expressed when rejecting prior ETF applications.
 
The proposed ETF rule change (prevent manipulation practice and market regulation) from CBOE would, if approved, constitute a critical point to listing a Bitcoin ETF, in conjunction with money management firm VanEck and crypto startup SolidX, which (proposal) was submitted in June. However, the SEC insider has already hinted support toward a bitcoin ETF – “My assessment is that it is feasible the SEC will decide the CBOE ETF proposal does satisfy requirements. Even if it doesn’t, it should be a long process. I do not expect the SEC to reach a final decision before the final deadline, which is 27 February 2019.”
 
While waiting till September 30 for SEC decision on Bitcoin ETF, Bitcoin market price from July to August as prove the $6000 as the moving average. The mid July 2018 Bitcoin lowest dropped resistance was $6300 and highest surged resistance $6800, and similar price hovered after Bitcoin broke the $6800 to $8400 before falling back to test the last year lowest rate of $5800 before finally hovered around $6300. 
 
For now, there is a controversy that bitcoin price would definitely depends on the SEC CBOE ETF decision since it will literally kick in the door for the traditional investors looking to diversify and put their hands on the market that offers relatively high gains, however, the price movement before is just a speculation. If the market believes the ETF will be approved, the price will probably surge.
 
Finally, there is a saying that “buy the rumor, sell the news” and that’s because as soon as an ETF is launched in still rambles, speculators would likely purchase bitcoin in anticipation of a future price soaring.





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