According to Cointelegraph: Today, the cryptocurrency market witnessed a slump, spurred by concerns over delays from the Securities and Exchange Commission (SEC) pertaining to decisions on pending Bitcoin spot ETF applications. This has resulted in long liquidations of more than $160 million.
The SEC is anticipated to review multiple outstanding Bitcoin ETF applications during this week, which include those by Hashdex and Global X ETFs (due by Nov. 17) and Franklin Templeton (due by Nov. 21). If the SEC fails to deliver decisions on these timeframes, the deadline extends to 2024.
According to James Edwards, a crypto analyst at Australian fintech firm Finder, market sentiment is bracing for further delays. He pointed towards a fraudulent BlackRock XRP trust filing previously causing drastic price fluctuations in the XRP market, as an event supporting the SEC's arguments about price manipulation in the crypto sphere.
The potential for a protracted wait could be prompting traders to lock in profits, given the current multi-month high prices in the crypto market.
The remarkable heightening of market optimism at the commencement of November, stirred by prospective Bitcoin ETF approval, seems to be fading. Bitcoin experienced a decline of 4% on Nov. 16, attributed to low liquidity at higher levels.
Despite earlier hopes for a Bitcoin ETF approval by Nov. 17, the SEC's recent delay of the Hashdex application suggests otherwise. Further, the SEC also postponed a decision on Grayscale's Ether futures ETF on Nov. 15, stimulating speculation that Grayscale's submitted 19b-4 form might be a potential "trojan horse".
The substantial liquidation of derivative positions – totaling over $160 million in the past 24 hours – further pushed down the crypto market. This happens when long derivative positions get liquidated without commensurate buying pressure from trading volume.
Though the crypto market faces a downward trend today, selected altcoins have managed to depict resilience. Undoubtedly, the immediate future of the crypto market remains subject to the myriad challenges unfolding on both regulatory and economic fronts.