When news came that the CBOE had withdrawn its request to change the rules to the SEC for consideration of the Bitcoin ETF, many traders held their breath, expecting BTC to renew the annual minimums. Fortunately, this news did not significantly affect the Bitcoin mood, and it sank by only 0.91%.
If we consider the total market capitalization, then this news also had little effect on the market. The fall occurred from $ 120.6 billion to $ 119.1 billion. At the moment, market capitalization is straightening to previous levels.
Why there was no “dump”?
We identified 5 reasons:
- Traders consider the likelihood of bad news from the SEC, given the closure of the US government
- CBOE Bitcoin ETF no longer matters to hard traders and investors.
- CME to Bitcoin expires tomorrow
- Traders have become more immune to bad news from Wall Street
- The next drop is not profitable for large players, such as Bitmain
If we talk about the reasons in more detail, then in the first scenario, the current closure of the US government affected the functions of many federal agencies, such as the SEC and CFTC. In the case of CFTC, it has all the rights to determine the future of Bakkt. For many, it was obvious that the news regarding Bitcoin-ETF was negative.
The following reason indicates the indifference that many traders and investors have to approve or reject an ETF application. In essence, the whole 2018 year was one deviation, and the next news could not affect the situation.
Third, Bitcoin CME futures expire tomorrow, January 25th. This event already takes into account the current value of BTC, so the CBOE news did not affect the market as expected.
Fourth, investors and traders have been dealing with a bear market for over a year, and have developed some immunity to bad news. Those that remained became almost immune to any negative news.
The last reason is obvious and even greater decline in the cryptocurrency market will not be beneficial for miners, and, as a result, will affect the business of equipment vendors. It is much more profitable for them to support the market in order not to lower mining to “outlet level” and below.