CEO Attributes BTC Drop to SEC ETF Delay Overreaction
A heavy drop in price for Bitcoin has been happening since the beginning of August. The same drop saw another harmful blow when the US Securities and Exchange decided to delay the Bitcoin Exchange-traded fund again and Dan Morehead, Chief Executive Officer of Pantera, believes the drop is just an overreaction to the news.
The CEO of Pantera Capital believes that traders have reacted way overboard to the news of the SEC delaying the BTC ETF once again. In an interview, he stated that the crazed reaction as a direct factor in the change of price, stating that bitcoin is still relatively early in terms of its notion and maintains a live price feed which excites individuals in terms of value and results in the overreaction.
On the 8th of August, BTC saw a significant drop past $6.5K, hitting the bottom at $6.1K prior to making a small comeback and climbing back to $6.3K on the market. This sway in price was a result of the decision by the US financial watchdog to delay the ruling on the VanEck and SolidX Bitcoin Exchange-traded fund. As of now, BTC is at its lowest price in the last month.
Commenting on the situation regarding the ETF, Dan Morehead stated that it will be a while before an ETF does see approval by the SEC, mentioning the last asset to be approved by the authority as copper and mentioning how long it has been around for, essentially 10K years. He also stated that the decision for another delay did not surprise him at all due to a similar on-going pattern extending over the last five years. The CEO also stated that the SEC is being incredibly slow with their approval or rejection of the proposed ETF due to the attached concerns of classifying such a product.
This year has not been the kindest to the digital currency market overall and a huge number of cryptocurrencies have seen incredible drops from their previous highs of last year and the beginning of 2018. Bitcoin has plummeted more than 60% since January, a significant drop in price.
However, the CEO has stated that the performance of Bitcoin and its value depends on how you look at it. He highlights the fact that Bitcoin remains over 80% within the last year and has stressed on related individuals to aim the attention at better news than the excess focus on exchange-traded funds.