If there is anything that investors should know by now is that cryptocurrencies are highly volatile. Today, Bitcoin and other major cryptocurrencies suddenly crashed. Though it is an unexplained market behavior, there are experts thinking that it’s panic selling that has triggered the situation.
Bitcoin fell by around 4% while Ethereum, Ripple, Bitcoin Cash, and EOS all dropped by around 10%. On Tuesday, Bitcoin was able to hit its one-month high which even led experts to believe that there are more price gains that the market can expect. According to blockchain investor and advisor Oliver Isaacs, “The increased price stability of Bitcoin over the last couple of days has not been witnessed for a while and I think it should be viewed as a positive sign with more gains to come, especially in the coming months”.
Matthew Newton who is a market analyst eToro has a more conservative approach saying that “Bitcoin’s price might be rising but it’s way too early to call this a true resurgence”. He also added that “we’ve seen the price yo-yo for several months so I’d be hesitant to herald this as a new dawn just yet…Traders should be cautious”.
Newton discussed that though the price is down, the development within the crypto niche is something to look forward to. He said that “Looking ahead, there is plenty to be positive about though. There’s lots of great fundamental news about the development of cryptocurrencies right now, but that’s going to take time to filter through and impact on price”.
Trading Higher Than Last Year
However, if you will look at Bitcoin’s performance from last year, it remains higher than it was in this part of the year. Last year, Bitcoin was able to reach near $20,000 only to go on a slump the following year after regulatory changes were made.
But is there a chance that Bitcoin makes a comeback? One of the things that is highly anticipated in the market today is the possibility of having a Bitcoin ETF. On September 30, SEC decision on the VanEck/SolidX Bitcoin ETF application will be made.
There were already a number of Bitcoin ETF application denials in recent months. One of the most popular Bitcoin ETF applications that have been rejected by the agency is the application of Cameron and Tyler Winklevoss. It isn’t the first time that the Winklevoss Twins submitted their Bitcoin ETF application.
Also, last week, there were nine Bitcoin ETF applications that were rejected by the agency. The agency mentioned the same reason for the rejections—price manipulation. However, the agency decided to review the Bitcoin ETF applications.
Will the crypto market recover any time soon? Is a Bitcoin ETF really the answer that the crypto market is looking for? Though a lot of people agree that it can boost the price of Bitcoin and the market, Andreas Antonopoulos believes that Bitcoin ETF is going to do a lot more harm than good. As for Vitalik Buterin, the co-founder of Ethereum, he believes that mass adoption is what the market really needs.