Recently, the market was affected by the news of the US Securities and Exchange Commission (SEC) delaying VanEck-SolidX’s Bitcoin ETF application, and it has seen some improvement, but nothing substantial. Scottie Siu, a Managing Partner at Orichal Partners, believes that the gap between the optimism and the final delay in the successful approval of the ETF application is the reason for the decline in the cryptocurrency market.
Siu said that since the SEC had directly rejected 15 Bitcoin ETF applications, cryptocurrency advocates and investors, including himself, did feel that the chances of approval of the Bitcoin ETF were small, but VanEck SolidX’s Bitcoin ETF proposal did have the biggest chance of success. Therefore, the decision to delay the application has undoubtedly disappointed the market, especially those who are optimistic about the successful approval. “This is definitely the reason for the decline yesterday.”
Siu also said that the price of bitcoin only fell back to the level of early July, and the trend broke through the two-and-a-half-month downtrend channel. He said that the recent decline was only to erase the benefits of the optimism passed through the ETF approval.
In conclusion, Siu believes that bearish sentiment still dominates. The market has been in a “safe haven” mode throughout the year. “But don’t think that we are particularly bearish than a few months ago, and the market-like sentiment is limited.”