Bitcoin Value Dips as SEC Denies Crypto Regulatory Amendment; Buying Trends Rise
Summary:
Bitcoin's value dipped below $41,700 following an escalation of sale pressure. This drop, which totaled over $1,300 or 3.2%, followed a recent recovery from volatile market activity. The decline was in response to the Securities and Exchange Commission's (SEC) rejection of Coinbase's request for regulatory amendment for cryptocurrency. The SEC had cited existing regulations, rulemaking procedure, and autonomy in setting priorities as reasons for the refusal. Current market analysis shows growing bid support circling $41,000, and increased buying activities from high-volume traders.
Bitcoin's value plummeted to below $41,700 following the commencement of trading on Wall Street on December 15, due to an increase in the pressure to sell. The sudden drop of over $1,300 or 3.2%, came right on the heels of a recovery of Bitcoin's value, which had suffered from some instability the previous day. This decline was a type of response to the US Securities and Exchange Commission's (SEC) decision to deny Coinbase a rule change concerning cryptocurrency.
As revealed by Gary Gensler, the SEC Chair, the commission declined to alter the regulations on behalf of Coinbase Global, Inc. Gensler cited three reasons for the decision: existing laws and regulations already apply to crypto securities markets; the SEC handles crypto securities markets in rulemaking; and it's crucial for the commission to have discretion in setting its rulemaking priorities.
The SEC is in the limelight for its role in the ongoing crypto market narrative, with the industry holding its breath for the first Bitcoin spot price exchange-traded funds (ETFs) approval by the organization, expectedly in early 2024. Gensler, during his interview with Bloomberg on December 13, acknowledged the ongoing legal matters which have arisen from the agency's repeated refusals of Bitcoin spot ETF applications.
Discussion of the recent Bitcoin setup showed growing bid support just around $41,000, while active supply stood at about $44,000. In addition, subsequent discoveries showed low-scale moving averages are back into contention.
Taking a broader view, Material Indicators co-founder Keith Alan indicated an ongoing fight to turn an important weekly level into support. The 0.5 Fibonacci retracement line near $42,500 is one of the several vital challenges to conquer en route to an all-time high of $69,000. In that regard, Material Indicators pointed out high-volume traders intensifying buying activities at the moment.
The information in this article is not investment advice or a recommendation. Each investment and trading move is associated with risks, and individuals are advised to carry out their own investigations when deciding on investment actions.
Published At
12/15/2023 7:52:27 PM
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