After the June 30 Wall Street open, Bitcoin (BTC) dropped below $30,000 as investors were worried about the destiny of its initial spot exchange-traded funds (ETFs).
Bureaucratic error may explain Bitcoin ETF filing hiccup
Data from Cointelegraph Markets Pro and TradingView demonstrated BTC plummeting, briefly hitting $29,500.
The report that the Securities and Exchange Commission of the United States had denied applications for the first Bitcoin spot-price ETF caused volatility.
The latest BTC price rebound was initiated by those applications, driving the biggest cryptocurrency to unprecedented heights for the year.
What could happen if a Bitcoin ETF is approved: the potential for $18B in sell-pressure.
The Wall Street Journal, citing an unnamed source, reported that BTC/USD had been restored, causing it to reach nine-day lows before bouncing back to around $30,000.
The initial report gave details about why the applications were declined, and upon hearing this news, market watchers declared that it was nothing more than a minor detail.
The Wall Street Journal reported that the SEC informed the exchanges that the submissions they had made were rejected as they did not specify the spot bitcoin exchange with which they were supposed to have a “surveillance-sharing agreement” or provide adequate information regarding the surveillance arrangements.
“Asset managers can revise the language and submit a new filing,” it stated.
“Tedtalksmacro, a financial commentator, gave a more optimistic view, suggesting that the SEC may be telling BlackRock what they need to do to get the approval, which is a positive sign.”
Rate hike bets surge despite PCE data beating expectations
At the time of writing, Bitcoin had dropped by more than $1,000 from its peak for the day.
Speculators of Bitcoin have sent 35,000 BTC to exchanges in a new wave of “elation inflow”.
Its losses are occurring at an opportune moment, with the monthly and quarterly candle close just a few hours away.
Separately, the macroeconomic data from the U.S. created further confusion among risk asset markets in general.
The Personal Consumption Expenditures (PCE) Index report was worse than anticipated, even registering its most significant decrease in twelve months.
Despite indications that inflation is decelerating, markets began to factor in a greater likelihood of interest rate increases resuming in July.
CME Group’s FedWatch Tool indicates that there is a nearly 90% chance of a 25-basis-point increase.
The Kobeissi Letter, a financial commentary resource, responded by asserting that inflation was still too high despite the outcome.
“The expectation of interest rates has increased following the publication of the PCE inflation data this morning. But what is the reason for this?” it asked.
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