The Bitcoin price has increased to $6,550 over the past 24 hours, as the crypto market recorded a solid recovery. Tokens like ICON demonstrated 10 to 30 percent gains.
Theta Token, Gas, CyberMiles, Nano, Lisk, PIVX, and ICON are the best performers of August 24, with Theta Token recording a massive 44 percent increase in value against both the US dollar and Bitcoin.
Almost immediately after the US Securities and Exchange Commission (SEC) disapproved eight Bitcoin exchange-traded funds (ETFs) on August 23, the Bitcoin price decreased from $6,550 to $6,280. But, the market recovered relatively quickly over the last 24 hours, rebounding from $6,280 to $6,550.
CCN reported yesterday that the ETFs which were denied by the SEC were publicly tradable instruments based on the value of derivatives and futures contracts provided by the Chicago Board Options Exchange (Cboe) and CME futures markets.
Previously, CFTC chairman Christopher Giancarlo stated that the Bitcoin futures market is not sufficiently large to become the base price of a large tradable instrument. On August 23, the SEC echoed the sentiment of chairman Giancarlo, stating that the threat of manipulation still exists in the futures market and until the market itself grows to a substantial level, it will not be possible for the SEC to allow an ETF based on the market.
Earlier today, Bakkt, the digital asset exchange created by Microsoft, Facebook, and the New York Stock Exchange, stated that price discovery is a concept which the cryptocurrency sector will have to continuously explore to meet the demands of the SEC and the broader financial market.
“The concept of ‘price discovery’ might sound bland for something as exciting as Bitcoin. However, trusted price formation is a fundamental part of advancing the promise of digital currencies,” the Bakkt team said.
Given that the eight futures-backed ETFs which were proposed to the SEC had a very low probability of being approved by the SEC, the rejection of the ETFs should not have had a major impact on the price of BTC, which explains the rapid recovery of the dominant cryptocurrency.
Fueled by the rebound of BTC, tokens recorded one of its strongest short-term recoveries in August, rising 10 to 30 percent against Bitcoin within a 12-hour period.
Last week, Diar, a cryptocurrency research group, released a weekly report that revealed the stability of Bitcoin has hit a 14-month high, as its rate of volatility increased. Since August 8, the price of Bitcoin has been stable in the $6,200 to $6,500 range, demonstrating weeks of stability.
For the next major rally in the crypto market, stability in the price of major cryptocurrencies like BTC and ETH is important, because smaller market cap cryptocurrencies depend on the price trend of BTC and ETH.
While BTC has been relatively stable, Ether, the native cryptocurrency of Ethereum, has been largely volatile, which analysts have attributed to the dump of Ether to the market by blockchain projects that have conducted token sales in the past.
Featured image from Shutterstock. Charts from TradingView.