Bitcoin and the SEC – Less than a Week to Go!

There’s been plenty chatter recently of the lack of volatility across the cryptomarket and most significantly Bitcoin that has seen its top end resistance in reverse through October, limiting the upside, while finding plenty of support on the downside.

Following a start of a week 2.2% slide that reminded the cryptomarket just how sensitive investors are to news, with no news being too small to rile the markets, moves since have seen Bitcoin and the broader market flat though not without some heavy losses in the month of October for all of the majors, with the exception of Bitcoin that slipped by just 3.83% in the month, paling into insignificance when compared with the likes of Ripple’s XRP, which was down 22% and the vast majority of the majors that saw at least 17% losses.

For many, the fact that Bitcoin managed to avoid a return to $5,000 levels since mid-August’s $5,858.6 in an extended bearish trend that has been running since early May’s swing hi $9,999 is almost miraculous when considering how far the rest of the majors have fallen.

The lack of a material sell-off is perhaps part of the problem for Bitcoin that seems to have now spread across the broader market, with side lined investors having very little incentive to jump back in, particularly with the ongoing uncertainty over the SEC’s pending decision on the Bitcoin ETF applications and over how the regulator landscape will look in the coming months and through the second half of next year, when the FATF is expected to roll out its anti-money laundering regulations in July, the deadline having been extended from last month.

While some may view the millpond environment as a possible positive, when it comes to the SEC decision, it’s less the market volatility and more the price manipulation and issues surrounding custody that are of greater concern. Monday’s latest crypto exchange theft in Canada came just 1-week before the SEC’s 5^th November deadline to approve or decline the famous 9 pending applications.

Considering how sensitive the markets are to crypo news in general and the general lack of news that has left Bitcoin and the broader market in limbo in recent weeks, is Bitcoin set-up for another tumble?

The general consensus has been that at least some of the ETFs will be approved before Monday’s deadline. One would hazard a guess that even a single approval would support a near-term rally, with one ETF likely to be followed by others… If the general consensus is wrong however, then not even the bulls will be able to save Bitcoin from a return to $5,000 levels, regardless of how the SEC’s attempts to soften the blow.

With Bitcoin down by just 0.06% through the early part of the day, it’s looking like we’re in for another range bound day, though there is always the possibility that the SEC could deliver a decision, one needed to wake up the market from its late October snooze.

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