The cryptocurrency market was trading below its peak on the 26th of December, as the market volatility affected the price of Bitcoin. According to the data, the largest cryptocurrency by capitalization faced a significant price drop, losing 3% of its value in just 24 hours. The selling pressure caused the price of Bitcoin to briefly drop to $41,998 before bouncing back to the $42,000 mark.
On of writing this article, the price of Bitcoin was trading at $42,000.
The cause of Bitcoin’s price drop is due to short-term holders; the data shows that short-term holders are moving their Bitcoin from cold wallets to exchanges. More than 25,000 bitcoins have been transferred in the last 24 hours. Comparing Bitcoin volatility with the past week, it is clear that the coin has lost over 6% of its value. Additionally, the supply chain has decreased by 0.07% to 19.58 million of the 21.0 million. Therefore, it is estimated that the current Bitcoin supply is 93.58%.
Bitcoin price has been facing rejection below the $43,500 mark, and at the moment the price is trading below the $43,000 mark in 100 hourly simple moving average. The price decline yesterday reached the $42,000 mark and even lower, but the price is currently attempting to make a fresh increase above the $42,000 level. The selling pressure mounted on Bitcoin at $44,400 level, decreasing the price of the coin by 50% Fib level. However, if the bearish trend continues, the price could potentially decline to $41,500 level.
The SEC Set Deadline for Bitcoin ETF Applications
The U.S. Security Exchange Commission (SEC) has announced that all ETF applicants must submit their filings by 29 Dec 2023. The SEC announced that applicants who submit their filling before Friday will be considered in the first wave of spot Bitcoin ETF decisions. According to the Fox Business finance journalist, she announced on her Twitter that the confirmed date for final amendment is 29 Dec, and all issuers are addressed by SEC to fully finish and file their application by Friday.
Moreover, the SEC has emphasized that the filling must not mention the in-kind creation method, or it will not be considered. The regulators have emphasized the use of the cash-creation method. Additionally, the SEC requires that the application names the authorized participant (AP) in their filing.
The SEC meeting was held last week on Thursday with representatives from the seven firms that are on the hunt for Spot Bitcoin ETF, among the seven firms were; BlackRock, Grayscale Investment, ARK Invest, Nasdaq, Cboe and 21 shares. Analysts are still hopeful that the SEC will approve the first spot Bitcoin ETF on Jan 10 although the firms are moving forward with the SEC last minute updates.