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- On August 31, the Securities and Exchange Commission has announced its decision to extend the date by which ETF applications must be reviewed.
- This further dampened sentiment and caused BTC to crash to a three-month low.
Bitcoin [BTC] fell below $26,000 as concerns mounted over whether the Securities and Exchange Commission (SEC) will approve the spot Bitcoin exchange-traded fund (ETF) in the US, despite the recent pronunciation in the grayscale issue.
Read Bitcoin’s [BTC] Price forecast 2023-2024
In response to the ruling, the regulator responded on August 31 announced its decision to extend the period within which all spot Bitcoin ETF applications submitted by BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise and Valkyrie Digital Assets must be reviewed.
Following this news, the price per BTC, which had traded above USD 27,000, fell immediately and has since fallen by 5%.
Source: CoinMarketCap
The regulator’s decision to set an extended window of time for review of all pending ETF filings before it has led many to believe that despite the grayscale victory, the SEC may not grant approval.
In a recent reportdigital asset investment company CoinShares found that BTC accounted for 87% of all funds removed from all digital asset investment products between August 21 and 25,
“Due to growing acceptance that a spot-based ETF for Bitcoin in the US is likely to take longer than many expect, with recent delays announced by the SEC.”
Traders are trying to reduce exposure
At the time of writing, the coin was trading for $25,778. With the market largely uncertain about the coin’s next price movements, the Bollinger Bands observed on a D1 chart suggested that BTC remained significantly sensitive to significant price swings.
Also, the coin’s price has tended closer to the lower band of the indicator, suggesting that selling pressure still outweighs accumulation. Key momentum indicators below 50 confirmed this.
At the time of writing, BTC’s Relative Strength Index (RSI) was trading south at 35.44. Similarly, the Money Flow Index (MFI) was set at 37.85.
The coin’s Chaikin Money Flow (CMF), which signals an increased liquidity exit among daily spot traders, turned negative at -0.05 at the time of writing.
How much is 1.10.100 BTC worth today?
A reading below the zero line is a sign of weakness in the market, as it indicates a liquidity flight, which could otherwise increase the value of an asset if held in the market.
Source: BTC/USD, TradingView
In the futures markets, BTC open interest continues to fall. Data maintained by Mint glass found that it is down 12% since August 30. At the time of writing, the coin’s Open Interest was $10.28 billion.
Source: Sentiment