The crypto space has been full of events over the past month that have shaped the trajectory of the entire market. Recent events include the increased buzz on spot Bitcoin exchange-traded funds (ETFs) and the ongoing Coinbase battle with the SEC. These events have spilled over and affected other digital assets and have led to a decline in the crypto market over the past hours.
Despite the Bitcoin rally, the crypto market has seen a decline today, and this can be attributed to various factors. Among the institutions taking advantage of the Bitcoin gain include Coinbase and MicroStrategy. Both organizations have seen gains in BTC inflows, but the entire market records a decline.
Bitcoin’s winning streak
Bitcoin hit a high of $35,265 on Tuesday when investors onboarded the spot Bitcoin ETF wagon. News on the exchange-traded funds has affected the crypto market positively, and this has caused a rise in its price by over 10% in the past weeks. Current crypto market activity can be linked to the fueled optimization towards approval of spot BTC ETFs by the US Securities and Exchange Commission (SEC).
The increased interest began when BlackRock appealed for its spot Bitcoin ETF approval but fell on the wrong side of the law. The organization currently awaits an approval ruling on its iShares BTC Trust exchange-traded funds.
Based on a press release issued by the SEC, a penalty of $2.5 million is to be charged. However, these charges were a win for the regulatory authority but have no relation to the digital currency space. The penalty didn’t limit BlackRock from relisting its iShares application on the DTCC.
According to a Bloomberg Analyst, Eric Balchunas, his views on the news noted that the iShares Bitcoin Trust Exchange-Traded Funds had disappeared from the DTCC site before reappearing again. Eric Balchunas also commented on the latest ARK filing and mentioned:
ARK just filed amendment #4 to their 19b-4, looks like it is to incorporate changes made to their S1 (which again were to address SEC qs). I guess I just want to make both docs be in tune (the first issuer to do so). I don’t see anything else to read into here but cc SG Johnsson.
Eric Balchunas
Crypto decline and DeFi market shambles today
Coinbase (COIN) experienced a rally on Tuesday amid the buzz in ETF and recorded a 6.29% gain. MicroStrategy also experienced a 12.55% surge around the same period. However, Coinbase is currently in a legal battle with the US Securities and Exchange Commission (SEC), and this has put the crypto exchange in the spotlight.
The reports on COIN were based on a filing on Tuesday towards a reply to the SEC legal appeal. Coinbase filed for a dismissal based on recent developments and its argument on SEC trying to redefine financial investment contracts.
A court ruling in favor of Coinbase could be pivotal for the entire crypto space as another SEC loss would end the regulation endearment era that has haunted crypto players from engaging in crypto services, even beyond the US.
Despite Bitcoin experiencing a surge streak from last week, its price dropped by 1.01% to $34,079 on October 25. The assets volume has decreased by 22.25% in the past 24 hours, recording a close of $35.79 billion.
Despite this decline, its price still recorded a gain of 19.48% over the past week, as it recorded a fresh high of $35,150.43 this week. These levels hadn’t been seen since May 2022. Its current price is tagged at $34,166 at the time of writing.
Ethereum has also witnessed a price plummet of 1.42%, recording a price level of $1,780.58. Its volume also fell by 22.19% to $12.86 billion. BNB also recorded a decline of 1.51% to $225.7, accounting for a fall in its daily volume to $533.95 million, that is a 24.02% decrease.
