Crypto markets have been on fire in recent weeks. Some say that they have gone up too fast and a massive correction is inevitable. Charts have been on 2017 redux as Bitcoin went parabolic again but one decision due this week could bring it all crashing back down again.
SEC VanEcK Decision Tomorrow
The crypto sphere is starting to express concern about the imminent decision on the VanEck exchange traded fund by the US Securities and Exchange Commission. The proposals for Bitwise and VanEck were published in the Federal Register on February 15 and 20 respectively. The regulator then has 90 days to make a decision, which for VanEck is due on Tuesday May 21.
There are three possible scenarios; firstly the EFT could be denied, secondly it will be approved and thirdly, and most likely, there will be a further delay. Economist and trader Alex Krüger pointed out that “A rejection would likely result in a great opportunity to buy the dip.”
Bitcoin and crypto markets are overdue a serious pullback. The minor dip that occurred at the end of last week did not last long and by Sunday Bitcoin was already surging back towards $8,000. Crypto trader and investor Josh Rager remains confident though;
“To answer ETF questions. May 21st is deadline.
Expected outcome is delay with likely minor impact on price (slight pullback to support which is bought up). Even with delay $BTC could continue to push up in the coming weeks to new yearly high,”
In an earlier tweet he noted that the upcoming ETF decision could certainly have a serious impact on BTC price but has since changed tune.
Bitcoin Still Bullish
At the time of writing Bitcoin was still heading upwards. The momentum that kicked off in early Asian trading on Sunday carried on into today as BTC returned to its 2019 high of $8,250. It has recovered fully from the two day correction which sent it back to low $7,000s and appears poised for further gains.
Daily volume has picked up again and is currently around $24 billion with Bitcoin remaining above $8,000, up a percent or two on the day. The majority of the major altcoins are gaining at the time of writing with Dash having a big 10 percent pump. Total market cap is just below $250 billion which is the highest it has been for around ten months.
A big correction, if it does come, will provide ample opportunity to load up on cheaper Bitcoin before things head north again.