Bitcoin price pumps hard as investors discuss ‘logic’ behind US SEC delay of spot BTC exchange-traded fund
- Bitcoin price remains above the $30,000 psychological level with a pronounced uptrend over the last five days.
- Meanwhile, SEC commissioner Hester Peirce is bemused with why the SEC has still not approved a spot BTC ETF.
- Community members have interesting views and perspectives on why the commission is moving at its own pace.
Bitcoin (BTC) price continues with its bullish bias, steadily edging north past crucial barriers. Meanwhile, investors are discussing the spot BTC exchange-traded funds (ETF), with a view to determining why the US Securities and Exchange Commission (SEC) continues to delay the decision.
Also Read: Bitcoin price did not need fake Spot BTC ETF news to break $29,000 barrier
Hester Peirce on SEC delays about spot Bitcoin ETF
Meanwhile, investors continue to look to the Securities & Exchange Commission (SEC) for a decision on when a spot BTC ETF will finally launch in the market.
One interesting opinion is making the rounds from a prominent figure after an interview was published on Monday. Speaking to Squawk Box, SEC commissioner Hester Peirce, more popularly known as the Crypto Mom, said she thinks a spot BTC ETF should have been approved five years ago, adding that “the logic for why we haven’t [approved a spot BTC ETF] has always mystified me.”
Peirce also acknowledged the Grayscale victory as an important factor in the industry but appreciates that the decision is not hers alone. This happened on August 29 when the firm secured victory in its longstanding case against the SEC, with the court deeming the financial regulator’s denial of Grayscale’s ETF proposal as being “arbitrary and capricious” as it failed to explain why similar products are treated differently.
JUST IN: SEC Commissioner says the "logic for why we haven't approved a Spot #Bitcoin ETF has always mystified me." pic.twitter.com/A5YRuT2gdA
— Watcher.Guru (@WatcherGuru) October 23, 2023
The Crypto Mom’s stance on the matter is a reminder of an August statement by former SEC staff member John Reed Stark, who spoke of partisan issues at the commission.
My take is that the current SEC will NOT approve a bitcoin spot ETF application for a range of compelling reasons…I also believe that the crypto-regulatory tides could shift exponentially after Election Day.
In Stark’s opinion, the partisan divide that has evolved regarding crypto at the SEC has culminated to a point where only a Republican getting elected US President in 2024 could give crypto the breather it needs.
On Hester Peirce, Stark noted, “If Hester Peirce becomes acting Chair of the SEC, given her lengthy track record of dissent and opposition to most crypto-related SEC actions, the world should expect that most US SEC crypto-related enforcement and most crypto-related SEC disruption would grind to a screeching halt.”
Nevertheless, Commissioner Peirce acknowledges that the agency has not been very good when it comes to Bitcoin and crypto.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
Bitcoin price tests $31,000
Bitcoin (BTC) price is trading with a bullish bias, sustaining the gains that started around October 15. It comes despite the SEC delaying what many perceive as long overdue decisions following multiple series of applications.
With the $31,000 psychological level within grasp, Bitcoin price could shuttle past this level, steered by rising momentum to confront the $31,777 range high. A break and close above this level would confirm the uptrend.
With the Relative Strength Index (RSI) still northbound, coupled with the Awesome Oscillator (AO) in the positive territory, the odds continue to favor the bulls. If the bulls hold onto their strength, the next optimistic targets are the $32,000 and $35,000 psychological levels.
BTC/USDT 1-day chart
Conversely, if profit-taking kicks in, Bitcoin price could retract, potentially going as low as the $28,676 support level. Further south, the slump could see BTC tag the demand zone, which extends from $26,995 to $26,510. A break and close below the midline of this order block at $26,734 would confirm the downtrend. Bearish targets in such a scenario would include the $25,000 level.
(This story was corrected on October 24 at 03:50 GMT to replace "Hester Pierce" with "Hester Peirce".)
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
