Bitcoin price brought down "by a handful of actors": bad news for ETF approval?

17 May, 2019
by David Robb
Analysis
Bitcoin price brought down by a handful of actors: bad news for ETF approval?

As the Bitcoin price is pulling back from the heights of $8000 back towards $7000 in less than 24 hours, many in the community are pointing to market manipulation as the cause of the dip. Analyst Larry Cermak points out that this will likely have a negative impact on the chances that a Bitcoin ETF will be approved by the SEC.

The retracement of the BTC price was not unexpected by the community, as there have been regular fluctuations throughout the past few weeks. However, this most recent dip was most likely caused by one major sell-off of around 5000 BTC, and Bitcoin's price dropped by over $600 in less than an hour.

As Cermak tells it, this ability of a small group of large 'whale' traders to influence the BTC price is the major concern that the SEC has, in terms of regulating the crypto space and approving a Bitcoin ETF proposal. 

The deadline for a decision on the VanEck ETF proposal is coming up on May 21, so the timing of this recent BTC dump is particularly bad for those hoping that the SEC will greenlight an ETF and bring a flood of institutional money into the space. Cernak believes that the chances of VanEck being approved are "virtually zero", and also claims that the lack of regulation on many online exchanges is affecting the SEC's trust in appropriate price discovery for BTC.

The commission recently delayed another ETF decision, extending its deliberations on the Bitwise proposal for potentially another 5 weeks.

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Read more about: Bitcoin (BTC)

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