Proactive Investors - Bitcoin (BTC) was smashed 5% lower on Thursday, effectively wiping out all gains made earlier in the week on the back of Grayscale’s promising court victory against the Securities and Exchange Commission (SEC), in which the former came one step closer to having its prized spot-bitcoin ETF approved.
But the SEC threw cold water on this mid-week rally after once again delaying its pending decision on whether to approve similar applications from the likes of BlackRock (NYSE:BLK), WisdomTree, Ark Invest and Bitwise.
Seeking more public feedback on the matter, the SEC pushed the decision deadline back to October 16.
It was enough to send bitcoin lower, suggesting the brief mid-week spike above 28k was all hot air.
In reality, the same long-tail headwinds apply to bitcoin: Low trading volumes, a lack of trust in the crypto economy and a general risk-off appetite among global investors.
Much is being pinned on these spot-bitcoin ETF approvals, so any delay or perceived risk to their eventual approval is taken poorly by investors.
Even on approval, there is every possibility that it culminates in a zero-sum game.
For now, the BTC/USDT pair is swapping nearly dead-on $26,000 as of 9am, September 1.
Binance’s order book shows selling resistance at $26,300 for the bitcoin-dollar pair.
Ethereum followed bitcoin’s trajectory yesterday, dipping 3.5% on the spot market to hit the midnight bell at $1,645, where the ETH/USDT pair has remained in this morning’s Asia trading window.
The sudden dip in these benchmark cryptoassets caused a spate of long liquidations on the futures market, with $42 million in long-bitcoin and $25 million in long-ether positions wiped out.
In the wide altcoin space, Dogecoin (DOGE) is one of the few blue chips to stay in the green week on week to the tune of 2.2%, while the likes of Ripple (XRP), Cardano (ADA), Solana (SOL) and Polkadot (DOT) have turned bearish.
Meanwhile, the Toncoin (TON) blockchain has climbed the ranks to number 11 on the charts, following a 22% week-on-week rally.
Global cryptocurrency market capitalisation currently stands at $1.05 trillion, with bitcoin dominance at 49.26%.
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