Bitcoin ‘overreacting’ as SEC returns ETF filings, BTC price dives 6%

BREAKING: PCE inflation, the Feds preferred inflation metric, FALLS to 3.8%, listed below expectations of 4.6%. Core PCE inflation is now at 4.6%, also listed below expectations of 4.7%. This is the biggest month-to-month drop this year.The Fed may finally be winning the battle versus inflation.

Despite signals that inflation is slowing, however, markets started to rate in a bigger chance of interest rate walkings returning in July.The newest information from CME Groups FedWatch Tool put the odds of a 25-basis-point walking next at nearly 90%. “Core PCE inflation, the Feds preferred inflation metric, is now UNCHANGED because December 2022. Core PCE inflation is now at 4.6% and still a significant problem for the Fed.

Bitcoin (BTC) fell listed below $30,000 after the June 30 Wall Street open as markets panicked over the fate of its first area exchange-traded funds (ETFs). BTC/USD 1-hour chart. Source: TradingViewBureaucratic error might explain Bitcoin ETF filing hiccupData from Cointelegraph Markets Pro and TradingView revealed BTC price action speeding downward, briefly reaching $29,500. The volatility accompanied a report that United States regulator the Securities and Exchange Commission had declined applications for the first Bitcoin spot-price ETF.Those applications had actually started the most current BTC rate rebound, one which had taken the biggest cryptocurrency to new yearly highs.Related: Why approving a Bitcoin ETF may release $18B in sell-pressureClaims by The Wall Street Journal, which cited an unknown source, that they had now been returned, saw BTC/USD hit nine-day lows before rebounding to circle $30,000. The initial report laid out the specific circumstances of the applications rejection, and responding, market observers recommended that this totaled up to little more than a technicality.The WSJ specified that “the SEC informed the exchanges that it returned the filings because they didnt call the spot bitcoin exchange with which they are expected to have a surveillance-sharing agreement or supply enough info about the details of those security plans.”” Asset supervisors can update the language and refile,” it added.Think the market is overreacting here, appears like the “rejection” is simply a technicality and Blackrock/Fidelity just have to refile calling Coinbase as the exchange that they have a “surveillance-sharing arrangement” with– Will Clemente (@WClementeIII) June 30, 2023

Bitcoin (BTC) fell below $30,000 after the June 30 Wall Street open as markets panicked over the fate of its first area exchange-traded funds (ETFs).” Asset managers can upgrade the language and refile,” it added.Think the market is overreacting here, appears like the “denial” is simply a technicality and Blackrock/Fidelity simply have to refile naming Coinbase as the exchange that they have a “surveillance-sharing contract” with– Will Clemente (@WClementeIII) June 30, 2023

BREAKING: PCE inflation, the Feds favored inflation metric, FALLS to 3.8%, below expectations of 4.6%. Regardless of signals that inflation is slowing, however, markets began to rate in a larger possibility of interest rate hikes returning in July.The most current data from CME Groups FedWatch Tool put the chances of a 25-basis-point walking next at nearly 90%.

Other Questions People Ask

What caused Bitcoin to dive 6% after the SEC returned ETF filings?

The recent 6% drop in Bitcoin's price can be attributed to the SEC's decision to return applications for the first Bitcoin spot-price ETFs. This unexpected move led to market panic, causing BTC to fall below $30,000. The situation was exacerbated by concerns over the future of Bitcoin ETFs, which had previously driven the cryptocurrency to new yearly highs.

Is the market overreacting to the SEC's return of Bitcoin ETF filings?

Many analysts believe that the market is indeed overreacting to the SEC's actions regarding Bitcoin ETF filings. The rejection appears to be a technicality, as the SEC indicated that asset managers could simply update their filings with the necessary details. This suggests that the long-term outlook for Bitcoin ETFs remains positive, and the current price drop may not reflect the true value of Bitcoin.

How does the recent PCE inflation data impact Bitcoin's price movement?

The recent drop in PCE inflation to 3.8% has created a complex backdrop for Bitcoin's price movement. While it signals that inflation may be slowing, markets are now pricing in a higher likelihood of interest rate hikes, which can negatively affect risk assets like Bitcoin. As investors react to these economic indicators, volatility in Bitcoin's price is likely to continue.

What should investors consider after Bitcoin's price drop due to ETF filing issues?

Investors should consider that the recent price drop may present a buying opportunity, especially if they believe the SEC's rejection of ETF filings is merely a technicality. Monitoring updates from asset managers like Blackrock and Fidelity regarding their refiled applications will be crucial. Additionally, understanding broader market trends, including inflation and interest rates, can help investors make informed decisions about their Bitcoin investments.

What are the implications of the SEC's actions on future Bitcoin ETF approvals?

The SEC's return of Bitcoin ETF filings may delay approval but does not necessarily indicate a permanent setback. Analysts suggest that once asset managers address the technicalities pointed out by the SEC, such as naming a specific exchange for surveillance-sharing agreements, approvals could still be on the horizon. Therefore, while there may be short-term volatility, the long-term potential for Bitcoin ETFs remains intact.