Staying updated on the ever-changing cryptocurrency market doesn’t have to be as tough as predicting which NBA players might be traded to which teams. I’ve rounded up the latest set of news to help y’all stay in the loop.
First off, here’s a snapshot of how bitcoin and its buddies have fared in the past seven days as of July 27, 3:00 am GMT. It’s back in the red for some, but bitcoin managed to maintain its lead!
While most altcoins retreated on profit-taking from the previous week’s rallies, bitcoin soared to highs not seen since mid-May. This allowed its share of total cryptocurrency market cap to expand to 47.2% – its largest since December last year – early in the week.
This also brought the total industry market capitalization to roughly $307 billion midweek as more bulls seem to be drawn by the recent rallies.
Naysayers dismissed these as a case of major FOMO in the markets, but enthusiasts say that the change in sentiment is palpable in the positive reaction to regulatory developments or even mundane updates.
Spotlight on bitcoin ETF
For those watching the cryptocurrency space since last year, this might feel like déjà vu as anticipation for the SEC decision on a bitcoin ETF was the stuff of headlines once again.
This time around, the U.S. regulator was looking into at least EIGHT bitcoin ETFs, including the five applications filed by Direxion Investments, another by SolidX, and that of the Winklevoss twins. Yes, the infamous Winklevi strike back!
Although much of the excitement propped up bitcoin prices for the most part of the week, the SEC announcement towards the latter part led to a dip. The industry watchdog decided to reject the one filed by Cameron and Tyler Winklevoss (again!) and delay their decision on the Direxion bitcoin ETFs until September.
As the SEC wrote in its statement:
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.”
Interestingly enough, the SEC hasn’t mentioned what they plan to do with the bitcoin ETF joint application filed by VanEck and SolidX, keeping some hopes up that it might have a better shot at approval.
No altcoin futures anytime soon?
Perhaps another factor that left bitcoin’s rivals eating dust for the latter part of the week was CME CEO Terry Duffy’s remarks on how they’re not planning on introducing altcoin ETFs anytime soon.In an interview with Bloomberg, Duffy cited that last year’s bitcoin futures listing “might have been the most controversial launch of a product” and that he would rather take a wait-and-see approach. He also pointed out that they’re not really seeing huge flows in bitcoin contracts.
On the subject of CME bitcoin futures, it’s also worth noting that contracts are due to expire by the end of this trading week (July 27), so there may be a strong case for a pullback on profit-taking.
Then again, historical performance suggests that this starts roughly five days prior to the actual contract expiration, so the dip may have already happened. Either way, just be sure to exercise extra caution when trading these extra volatile instruments!