Upcoming Changes in the Crypto-Market
For cryptocurrency markets to advance in terms of growth and adoption into the mainstream, institutional investment is needed, although this entails regulations as well. As the US Securities and Exchange Commission being involved and their hesitant approach, Bitcoin has suffered losses of 6 percent in value. Other affected coins include Litecoin, NEO, and Ether.
The most recent cause in the drop in BTC price is that failing of the exchange-traded fund resulting in losses anywhere between 6-10 percent on the market and Bitcoin shedding 6 percent. Despite this, the new changes on the way in regards to BTC and its trade are important in regards to its mainstream adoption. A small bearish movement has been visible since the last week of last month.
During this week of August, digital asset exchanges and a majority of Alternative coins have seen a 10 percent drop and are now valued even lower following the opening on the 14th of August and the current rally is, for now, at a standstill. The Securities Commission did delay yet another decision to approve or reject an ETF, another factor playing into the decline in BTC valuation also through NEO has seen sustained prices against the USD.
The current Bitcoin ETF on standby is one submitted by VanEck and SolidX together. Should it be approved, the ETF would be listed on the CBoE and would introduce Bitcoin at a 25 valuation on the index for investors. Every time the SEC decides to postpone yet another decision, the resulting event of Bitcoin taking a hit to its price. Additionally, another situation like this occurred earlier this year when the financial watchdog decided to reject a proposal for the first-ever Bitcoin ETF by Bitcoin billionaire brothers, the Winklevoss twins although at the time, a more significant drop of around 30 percent in Bitcoin’s price was a result.
This can also point to the fact that investors are adapting and becoming smarter in recognizing that all these events are only occurring on a short-term base and will eventually pass. In regards to news about institutes includes the Wall Street giant, Goldman Sachs, and how the investment firm is preparing to provide services to different crypto-funds, another display of the right direction in terms of adoption.
More positive news within the crypto-industry and community is that the new chief executive officer is Damn Salomon who is now actively attempting to introduce and promote the future of cryptocurrencies on Wall Street and is one of the many leading figures in investment taking their first steps into the crypto market.