Bitcoin ‘overreacting’ as SEC returns ETF filings, BTC price dives 6%
BTC price action reacts badly to Bitcoin spot ETF filing errors with the SEC....
- Bitcoin (BTC) fell below $30,000 after the SEC rejected applications for the first Bitcoin spot-price ETF.
- The rejection was due to a technicality regarding the naming of the spot bitcoin exchange and surveillance arrangements.
- Market observers believe that asset managers can update the applications and refile.
- Despite the rejection, there is optimism that the SEC is indicating what needs to be done for approval.
- Bitcoin traded down over $1,000 from the day's highs at the time of writing.
- U.S. macroeconomic data, specifically the lower-than-expected PCE Index print, caused confusion in risk asset markets.
- Markets began to price in a higher chance of interest rate hikes returning in July.
The sentiment in the article is mixed. There is panic and concern over the rejection of the Bitcoin ETF applications, but there is also optimism that the applications can be updated and refiled. The confusion caused by macroeconomic data and the possibility of interest rate hikes also contribute to the mixed sentiment.