Bitcoin (BTC) fell below $30,000 after Wall Street opened on June 30 amid panic over the fate of its first spot exchange-traded funds (ETFs).
Bureaucratic Mistakes Could Be Reason for Bitcoin ETF Filing Problems
Data from Cointelegraph Markets Pro and transaction view It shows that the BTC price trend has fallen sharply, briefly touching $29,500.
The volatility comes amid a report that U.S. regulator the Securities and Exchange Commission has rejected an application for the first bitcoin spot price ETF.
The apps kickstarted the latest bitcoin price rally that has pushed the largest cryptocurrency to new yearly highs.
Related: Why Bitcoin ETF Approval Could Unleash $18B of Selling Pressure
claim Those assets have now been withdrawn, with bitcoin hitting nine-day lows against the dollar before bouncing back near $30,000, the Wall Street Journal reported, citing an unidentified source.
Initial reports outlined the circumstances under which the application was rejected, which market watchers said was nothing more than a technical issue.
According to the Wall Street Journal, “The SEC told exchanges it returned the documents because they did not name the spot bitcoin exchanges with which they were expected to enter into ‘monitoring sharing agreements’ or provide information about these monitoring arrangements. Sufficient information for details.” “.
“Asset managers can update languages and re-archive,” it added.
Think the market is overreacting here, it seems like the “denial” is just a technical issue, BlackRock/Fidelity just need to rename Coinbase as the exchange they have a “monitoring sharing agreement” with
— Will Clemente (@WCclementeIII) June 30, 2023
Tedtalksmacro, a financial commentator, said: “It could even be interpreted as the SEC is showing BlackRock what they need to do to get it approved…which is also positive.” debate Take a more optimistic view.
Rate hike bets surge despite PCE data beats forecasts
Still, the bitcoin price is down more than $1,000 from the day’s highs at the time of writing.
Related: Bitcoin Speculators Send 35,000 BTC to Exchanges in New ‘Elated Inflow’
Its losses came at a prescient time, with the monthly and quarterly candles set to close within a few hours.
Separately, U.S. macroeconomic data brought further confusion to broader risk asset markets.
The personal consumption expenditures (PCE) index fell short of expectations and even posted its biggest drop in a year.
Breaking news: Personal consumption expenditures (PCE), the Fed’s preferred inflation gauge, fell to 3.8%, below expectations for 4.6%.
Core personal consumption expenditures inflation is now at 4.6%, also below expectations for 4.7%.
It was the biggest monthly drop this year.
The Fed may finally win the battle against inflation.
— KobeissiLetter (@KobeissiLetter) June 30, 2023
Markets are starting to price in a more likely rate hike in July despite signs that inflation is slowing.
CME latest data Fed Watch Tool The probability of a 25 basis point rate hike next is close to 90%.
The Corbesi Letters, a financial review resource, responded by arguing that despite the results, inflation was too high.
“Rate expectations are rising following the release of personal consumption expenditures inflation data this morning. But why?” It ask.
“Core PCE inflation, the Fed’s preferred measure of inflation, has been unchanged since December 2022. Core PCE inflation, currently at 4.6%, remains a major concern for the Fed.”
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