CNBC Fast Money contributor and BKCM CEO Brian Kelly has firmly emphasized that while bitcoin has seen a massive decline in price over the last 24 hours, investors selling the dominant cryptocurrency based on the delay of SEC in approving the first bitcoin ETF are doing it wrong.
Over the last 48 hours, the crypto market lost $29 billion, as major cryptocurrencies dropped by 10 to 25 percent in value.
While the vast majority of analysts have pointed towards the decision of the SEC to postpone the approval of the VanEck Bitcoin ETF to justify the short-term price trend of BTC, some investors have raised their suspicion on the viability of the claim, especially considering that the delay in the SEC’s decision was expected.
Rather, it is more likely that a large sell-off in the over-the-counter market has caused the market to plummet.
Regardless, Kelly emphasized that it was not the right move for investors to sell holdings in crypto solely due to the SEC’s announcement on August 7, and that bitcoin ETFs will not be approved by the end of 2018.
“It [bitcoin] has had a tremendous run off of $5,800, and that was all really because people thought there was going to be a bitcoin ETF. The SEC came out and postponed that decision. A little spoiler alert, on September 30, SEC will likely postpone in again, because the market is not ready for it and the SEC hasn’t had the answers to their questions yet.”
Throughout the past week, while all of the major cryptocurrencies and tokens have performed poorly against the US dollar, ethereum classic has demonstrated a solid movement against both bitcoin and the US dollar.
Kelly noted that the price of ethereum classic has surged by over 30 percent mostly due to the integration of ETC on Coinbase and Robinhood, which is expected to open the ETC market to retail investors in US markets.
“Ethereum classic has been up 30 percent over the last month. Really the driver of ethereum classic are two things: Coinbase and Robinhood. This is the first time the retail investors will kind of get a real easy way to get into ethereum classic. Coinbase added it to their institutional side, I believe over the next week or so, they’re going to be adding it to their retail side of the platform.”
Led by Barry Silbert’s Digital Currency Group and Grayscale Investments, ethereum classic is also one of the four cryptocurrencies alongside bitcoin, zcash, and ethereum to have a publicly tradable instrument dedicated to facilitate the trading of ETC amongst retail investors in the regulated US market.
As cryptocurrency businesses continue to develop infrastructure around ethereum classic, likely due to the clarification of the SEC on the non-security nature of ethereum, the value, volume, and user base of ETC are expected to increase at a fairly rapid rate.
Featured Image from CNBC/YouTube
Last modified: May 20, 2020 6:08 PM UTC