CRYPTO FREE FALL CONTINUES AFTER SEC DELAYS ETF DECISION
After weeks of sustained gains, cryptocurrency prices fell after the U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it would delay making a decision on a proposed Bitcoin exchange-traded fund (ETF) by VanEck. Over the past five days, Bitcoin, Ethereum, Ripple, and Litecoin have declined by 14.5%, 13%, 22%, and 19% respectively with the crypto market cap dropping by more than $30 billion.
An ETF is a financial product that tracks the price of an asset and is listed on an exchange. The proposed ETF by VanEck was set to be the first financial product of its kind. VanEck is a leading ETF and mutual funds provider with more than $47 billion in assets under management. It has hundreds of ETFs in almost all sectors and regions, which raises the likelihood that the SEC will eventually accept its proposal although the delay has had a somewhat negative effect on the crypto sector.
Ethereum is now trading at $350. This is the lowest level since November last year. The price is below the 100 and 200-day exponential moving averages. Its RSI is currently at 21 on the four-hour chart; the lowest level in weeks. The parabolic SAR points to a sustained downward movement as the pair trades at the lower Bollinger Band level. There is a likelihood that the pair will continue moving lower to test the $300 level unless it is supported by positive news.