The Bitcoin (BTC) price could crash to the mid $6,000 level. This is if it does not manage to recover its volume in the next day or two. CCN revealed that the BTC volume and that of all the cryptocurrencies have plunged significantly from only late July. The entire digital asset space is down an average of over 30% so far.
CCN cites the powerful market downtrend and the failure of Bitcoin volume to recover as the primary reasons. This is why the price level of the cryptocurrency will probably decline to the middle $6,000 range this downturn. BitMEX CEO Arthur Hayes agrees with CCN. He argued that the volume of the cryptocurrency must rebound to between $4 and $5 billion over coming days. If it does not, then there will be a plunge to the mid $6,000 range inevitably.
Analysts Blame Rapid Crash in Bitcoin Prices on the SEC
Analysts and investors have fingered a likely suspect for why the cryptocurrency has swooned in the last 24 hours. The U.S. Securities Exchange Commission decided to delay their approval of any Bitcoin ETF until August 8th . This applied to both VanEck as well as SolidX.
Part of this dramatic BTC reaction comes from two leading cryptocurrency markets South Korea and Japan. Both have made it a central trading theme. Their traders and “influencers” formed a significant digital assets’ narrative on the two ETF applications, CBOE Bitcoin and VanEck. They claimed ambitiously that the only thing keeping BTC from passing its old $20,000 highs would be approval delays. The lesson is to be careful what you prognosticate.
Another theory is the SEC decision just happened to coincide with a significant OTC market selloff that is underway. This Over the Counter exchange market is still two to three times bigger than the entire cryptocurrency market.
A final possible reason for the massive BTC selloff centers on a major group of crytocurrency bear market believers. They had been looking for a reason to liquidate a good size of their holdings in the last several days. Bears found their excuse thanks to the SEC decision. It led to a potential overreaction and caused the flash panic selloff.