Bitcoin, the world's most valuable cryptocurrency, was trading below $27,000 early on Wednesday, showing a nearly 0.50% decrease in price to $26,220.
The overall crypto market cap was at $1.05 trillion, indicating a 0.46% decrease over the past 24 hours. The poor performance of Bitcoin and Ethereum contributed to losses across the entire market.
Bitcoin's recent losses are due to the SEC's delay in deciding on the Ark 21Shares Spot Bitcoin ETF, which could negatively impact investor confidence and lead to short-term price fluctuations.
Bitcoin's low volatility has reduced trading activity and trader enthusiasm, due to a lack of significant profit opportunities and no clear timeline for ETF approval.
However, Bitcoin's blockchain recently surpassed 900 million total transactions and Microstrategy's purchase has injected optimism into the market, pushing Bitcoin above $26,000.
The Fed's possible interest rate increase to combat inflation and other recent developments offer hope for Bitcoin's performance.
The SEC has extended the decision deadline for the ARK 21Shares Bitcoin ETF to January 10, 2024, and for the Global X Bitcoin Trust to November 21, 2023, giving them more time to review these proposed ETFs.
The SEC is also evaluating spot Bitcoin ETF applications from several companies including BlackRock, Fidelity, VanEck, and Invesco.
Regulators have pushed the decision deadlines on several Bitcoin ETFs to October 16-19.
The delays may cause short-term uncertainty in the cryptocurrency market, leading to fluctuations in Bitcoin's price, and can influence investor sentiment and slow down mainstream adoption.
Several US lawmakers, namely Representatives Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel, have joined forcesRead more on cryptonews.com