BITCOIN UPSWING FOLLOWING ETF REVIEW BY THE SEC
Over the past two weeks, the price of Bitcoin has moved higher from a low of $5800 to the current $7190. The upswing came as senior management of the Securities and Exchange Commission (SEC) started reviewing the reasons why the ETFs were rejected. Traders hope that the SEC will overturn the decision and allow ETFs, which they hope will attract more capital from investment managers.
Bitcoin expert and author, Andreas Antonopoulos, said that a Bitcoin ETF will happen. However, he cautioned that this will have a short-term boost to the price of Bitcoin and cause long-term harm. In a statement, he said: “ETFs fundamentally violates the underlying principle of peer-to-peer money, where each user is not operating through a custodian but has direct control of their money because they have direct control of their keys.”
Meanwhile, the price of Ethereum has remained below the $300 level for more than two weeks. Ethereum traders ignored the news that the Chicago Board of Options Exchange (CBOE) will launch Ethereum futures by the end of the year. The lack of movement in the ETH price was probably because of the lessons that came with the listing of Bitcoin futures at the CBOE and CME. Instead of increasing demand for Bitcoin, most investors shorted Bitcoin causing its price to fall sharply.
In early May, the ETH/USD pair reached a high of 795. Since then, it started a sharp decline that saw it reach a year-to-date low of 242 in early August. It is now trading at 275, which is in line with the 50-day moving average. The pair is likely to follow Bitcoin, which has made some gains in recent weeks. If this happens, it will trade above the 300 level.