Another day, another crash of Bitcoin of over 10%. What could be the reason for this latest dip in the cryptocurrency market?
With Bitcoin down over 10%, Ethereum losing 15% of its value and coins like EOS even dropping more than 20%, many people are wondering what's going on. The interesting thing about this latest crash is: there is no news at all that could have caused this, not at this point anyway.
The November crash was the result of the Bitcoin Cash hash war, and the many dips and crashes before all had a clear reason (not always a justified one, by the way). But this time it's a bit different.
I used to wake up in the morning , look at the market price and then look for the news that caused the moves. These days though there is no correlations between the news and the moves in the market.— Ran NeuNer (@cryptomanran) December 7, 2018
SEC delays decision on VanEck ETF
Yes, there is the news that the SEC has delayed the decision on the Bitcoin ETF filed by VanEck. This however, came as no surprise to anyone. So far, the SEC has delayed decisions on ETFs for as long as they could, and everyone expected that the commission would wait until the final deadline in February 2019 before making any decision on whether or not they will approve the VanEck ETF. 'The Bitcoin price didn't fall because of the ETF delay', journalist Joseph Young stated on Twitter just after the crash.
VanEck Bitcoin ETF delay until February was expected and to be frank, it's common sense. Why would the SEC go out of its way to approve or reject an ETF filing prematurely?— Joseph Young (@iamjosephyoung) December 7, 2018
And so no, the Bitcoin price didn't fall because of the ETF delayhttps://t.co/9t7Dp49NSQ
Timothy Tam of cryptocurrency research firm CoinFi argues in an interview with Bloomberg that the ETF delay could still have caused the drop, even when it's not even really news. "Sentiment in the market is really bad, any negative news has an exponential effect."
Read more: Is Bitcoin dead? 8 reasons why it is NOT
Most likely, Bitcoin 'just isn't done bottoming out'. After reaching the all-time-high of close to $20K in December 2017, Bitcoin and with Bitcoin the cryptocurrency market began its freefall to the current levels. $BTC needs to find a bottom first before we can start thinking about a recovery. With the pace of the retracements of the past few weeks, dropping from $6300 to below $3500, it seems that bottom is not here yet.
New update: we're not there yet.— Crypto_Ed_NL (@Crypto_Ed_NL) December 7, 2018
First bouncing areas I see:
Let's all agree we start the weekend and let the bears have their party, so we can start the mother of all bounces on monday
VIDEO: Where will Bitcoin bottom out?
Is there any reason for hope?
The longer we're in this, the closer we get to the turnaround point. There are some interesting institutional breakthroughs coming in Q1 2019, with Bakkt launching their Bitcoin futures and Fidelity opening up the crypto space for their 13,000 institutional investors. Nasdaq is planning to launch their Bitcoin futures early 2019 as well. In the meantime, Bitcoin could go lower, uncertainty will stay in the market, but know who's buying from panic sellers right now.
Read more: 9 Bitcoin price predictions for 2019 by crypto experts
I know for fact strong hands are buying into the weakness in BTC on scale down, even though I know they are hedged with CME futures for now.— Peter Brandt (@PeterLBrandt) December 7, 2018