The cryptocurrency industry took a significant hit on 8th August after the Securities Exchange Commission (SEC) failed to approve an exchange-traded fund for Bitcoin. Investors waited with baited breaths only to receive the disappointing news that VanEck’s third attempt to advocate for this ETF floundered, a move that triggered Bitcoin’s downward spiral. Within the first twenty-four hours, the value of Bitcoin plummeted by 6% trading at around $6300 from its peak of $20,000 at the close of 2017. This drop sent shockwaves across the industry, and perhaps there’s more to come.
The cryptocurrency market has enjoyed its fair share of success, but lately, this industry has been mired with a slew of challenges that have thwarted northward movement. Investors had their sights on the launch of Bitcoin ETF which was expected to inject new life, but instead, Bitcoin recorded staggering losses in the past two days with its value dropping by $30 billion. This dive was triggered by a decision of the Securities Exchange Commission (SEC) to postpone the highly anticipated Bitcoin ETF approval. Shareholders were hoping for a favorable outcome that would have made it possible to trade this altcoin on the Chicago Board Options Exchange (CBOE). As a result, investors are racked with nervous energy and are offloading Bitcoin reserves to cushion themselves from future losses.