BTC Holds on to $3,500 Support After Cboe Withdraws Bitcoin ETF Proposal

The price of bitcoin, the flagship cryptocurrency, has held on to the $3,500 support after the US Securities and Exchange Commission (SEC) announced the Cboe BZX Exchange, which was going to list the VanEck-SolidX Bitcoin ETF if approved, had withdrawn the proposal.

As CryptoGlobe covered the SEC’s notice revealed BZX withdrew the proposed rule change on January 22. While some believe a Bitcoin ETF would bring in institutional investors into the ecosystem and help bitcoin mature as an asset, others are relieved the ETF isn’t coming just yet.

Mati Greenspan, a senior market analyst at eToro, revealed to his mailing list that the proposal was withdrawn to deny the US SEC the opportunity to deny the ETF in a “power move.” The proposal would likely have been denied as the cryptocurrency’s market isn’t seen as mature enough for an ETF, and over the government’s shutdown.

Reacting to the news cryptocurrency traders seemingly haven’t turned bearish. At press time, BTC is trading at $3,580 after falling 0.3% in the last 24-hour period. This means the cryptocurrency is still trading within the $3,500 to $3,800 range it’s been on since it fell from the $4,000 mark on January 10.

Bitcoin's price performance in the last 30 days

The cryptocurrency’s price action comes as more details about the Cryptopia hack have been revealed, showing that it was an “unusual” one compared to other hacks, as the attackers were seemingly not in a rush to withdraw funds from various wallets they managed to access. It also comes as the CEO of JP Morgan, Jamie Dimon, revealed he isn’t taking any pleasure from bitcoin’s 80% price drop from its near $20,000 all-time high in late 2017.

Commenting on the market seemingly being unfazed by the development, Greenspan noted that it’s a “clear sign that investors are starting to understand” the crypto market doesn’t depend on centralized organizations. The email reads:

The crypto market is not dependent on any government or financial institution and no single product or service has the power to make or break bitcoin. We call this maturity.

Notably, some expect bitcoin’s price to rise in the short-term, as the GTI Global Strength Technical Indicator is, according to Bloomberg, “nearing oversold levels, clocking in at 35.6” The GRI VERA Trend Signals Indicator, which helps traders identify trends, is implying BTC may move up in the near future.

While BTC is down in the last 24-hour period, some top cryptocurrencies have actually seen their value rise. Ether, LTC, XRP, and BCH have all dropped in said period, while Zcash, EOS, TRON’s TRX, and Dash have all risen by less than 1%.