The US Securities and Exchange Commission (SEC) recently decided to delay a decision on a cryptocurrency exchange-traded fund (ETF). This caused a general drop in the value of the crypto market over the last 24 hours.
A Look at the Crypto Market
The bitcoin markets are going through a big drop as of Wednesday, September 27, 2023, at 7:01 AM WIB (Western Indonesian Time). Some well-known coins are going down in value, with Bitcoin being the most notable. Bitcoin’s value has dropped by 0.32% and is now worth $26,214.55. In addition, Bitcoin has lost 3.65% in value over the past week.
In the last 24 hours, Ethereum, the second-largest cryptocurrency by market size, has only gone up by 0.32%. Ethereum, on the other hand, has lost 3.03% in value over the past week.
Some other well-known crypto, like XRP, have lost 0.76% per day and 2.43% per week.
As a new player in the cryptocurrency world, Solana has lost 1.94% in the last 24 hours and a big 5.09% in the last week.
The CoinDesk Market Index (CMI), which is a key way to measure how well digital asset markets are doing based on market value, has gone down by 0.27% and is now at 1,098.35. Open interest has also gone up slightly, by 0.43%, hitting $24.00 billion at the same time.
Indicators of Crypto Sentiment
Several mood measures also show how people feel about the crypto market. Alternative.me says that the Bitcoin Fear & Greed Index is at 44 right now, which means that people are feeling “fear.” This is less than the previous day, September 26, 2023, when the mood also “fear”-based (46).
The Fear & Greed Index, which is another measure of mood, is currently at 39, according to coinmarketcap.com. This reading shows that the crypto market as a whole is still feeling pretty negative, with a leaning toward “fear.”
What the SEC Did About Spot Bitcoin
The main thing that caused the crypto market to drop so much was the US Securities and Exchange Commission’s (SEC) move to put off making a decision on a Bitcoin ETF.
Cointelegraph.com says that on September 26, the SEC put out a warning saying that the decision-making deadline would be extended. The longer time frame for approving or rejecting the rule changes. It needed for the ARK 21Shares BTC spot ETF to be traded on the Cboe BZX Exchange.
It’s important to note that this latest delay is similar to one the SEC started on August 11. The earlier extension gave officials until November 11 to decide whether to agree with the finding, disagree with it, or delay it even more.
This new delay comes at the same time that the SEC put off making a decision about a Bitcoin ETF that a well-known fund manager, GlobalX, had suggested. It’s still not clear why the commission decided to delay making decisions on Bitcoin ETF applications for several weeks before the deadlines in October and November. More often than not, regulatory bodies wait until just a few days before the deadline to ask for delays.
Longer Period of Time to Think
Because the SEC has given an extra 60 days to look over the ARK 21Shares offering, the latest date they have to make a decision on them is January 10. On the other hand, a decision must made on the GlobalX ETF by November 21.
The longer time frame for thinking about these ETFs has made the coin market less stable. The current situation suggests that the SEC is still hesitant to accept and approve spot ETFs that are linked to crypto. This has left market players unsure.