Yesterday 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 yesterday. 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.
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 whatsoever. January 22 also showed little price movement.
What does it all mean?
Two possible conclusions exist as reasons for the noted lack of price action.
1 – Is the selling over?
At the top of the last crypt 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 shook 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.
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