This week hosted a crucial news announcement about the withdrawal of a bitcoin exchange-traded fund (ETF). Bitcoin’s price, however, barely reacted to the news. This lack of action could be very telling of state of the crypto market.
Crypto Insider reported on the Chicago Board Options Exchange’s (CBOE) withdrawal of the VanEck-SolidX bitcoin ETF this week. This particular ETF made significant headlines over the course of 2018, leading up to a much-anticipated February 2019 decision date.
Over the past several months, negative news appeared to negatively affect bitcoin’s price (also often sending shockwaves to the correlated altcoin space).
When the Intercontinental Exchange (ICE) postponed its Bakkt crypto product launch back on November 20, price clearly showed movement. As seen on bitcoin’s daily candle chart below (each candle represents one day of price action), bitcoin also showed significant blood on November 19.
It is difficult to tell whether or not price action on November 19 was due to speculators selling upon hearing early news leaks. Although, it is also possible the news just coincidentally occurred while bitcoin was already on its way down, and that maybe the event did not have any direct correlation to price.
VanEck-SolidX December delay
The last time the VanEck-SolidX bitcoin ETF faced delay was on December 7. Bitcoin’s daily candle chart below does not exactly show a major downward response in price. December 6, however, does show a decent price move downward, possibly giving credence to the leaked news theory above.
Bitcoin ETF pulled on January 23
Yesterday’s VanEck-SolidX bitcoin ETF announcement did not appear to show any considerable price action. January 22 also showed little price movement comparatively.
What does it all mean?
Two possible conclusions might exist as reasons for the noted lack of price action.
1 – Is the selling over?
At the top of the last crypto bull market, cryptocurrency’s total market cap hit highs of more than $800 billion, according to CoinMarketCap data. The total market cap now sits at roughly $120 billion, a shadow of its former glory.
During bitcoin’s price descent, it appeared as though the crypto space went through the classic stages of a market cycle. Basically, the market seems to have shaken out people who were not convinced on bitcoin’s price valuation and long-term success, among other reasons.
After a difficult year of selling pressure for bitcoin last year, has the market finally shaken out those who are willing to sell their holdings? When no more sellers are present, it would make sense that negative news would no longer have a negative price effect on crypto assets.
2 – Manipulation?
Another explanation for bitcoin’s stability and lack of movement after such news possibly could be price manipulation from big players. Although motivations for such price manipulation could be any number of possibilities.
News already accounted for?
As noted in a previous Crypto Insider article, influencer Josh Rager posted an interesting tweet on the lack of market repsonse.”With no price action response it’s assumed that this was expected and priced in the market,” he tweeted, referring to the lack of action seen after the bitcoin ETF news broke.
Regardless of the reasoning, bitcoin is at an interesting point on its chart, and only time will tell what the future holds.
*This article includes opinions and speculations from the author and is not in any way financial advice. Writing about price levels is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.