Bitcoin Price Plummets Following SEC's Coinbase Snub

Bitcoin, the world’s largest cryptocurrency, experienced a significant price dip following the opening of Wall Street on December 15

by Faruk Imamovic
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Bitcoin Price Plummets Following SEC's Coinbase Snub
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Bitcoin, the world’s largest cryptocurrency, experienced a significant price dip following the opening of Wall Street on December 15, highlighting the volatile nature of digital currencies amid evolving regulatory landscapes.

SEC’s Decision Impacts Bitcoin Market

Bitcoin’s value plunged below $41,700, marking a sharp decline of over $1,300 or 3.2% in a single day. This downturn followed a brief recovery from a snap volatility the previous day, failing to sustain momentum above the $43,000 mark.

Analysts attribute this weakness partly to news from the United States Securities and Exchange Commission (SEC), which recently declined a proposal by major cryptocurrency exchange Coinbase to amend rules for crypto trading.

SEC Chair Gary Gensler outlined the reasons behind the decision, emphasizing the applicability of existing laws to crypto markets, the SEC’s ongoing rulemaking in this area, and the importance of preserving the Commission's discretion in setting rulemaking priorities.

This decision is a part of a broader narrative in the crypto market, particularly with expectations that the SEC might approve the first U.S. Bitcoin spot price exchange-traded funds (ETFs) in early 2024.

In a recent interview with Bloomberg, Gensler discussed the agency's approach to Bitcoin spot ETF applications, stating, “The SEC does things according to our authorities and how courts interpret our authorities, and that’s what we’ll do here as well”.

Market Analysis and Future Outlook Market analysts are closely monitoring Bitcoin's order books, noting increasing bid support around the $41,000 level. Popular trader Skew observed, “Increasing bid depth around $41K, will be interesting from here.

Active supply around $44K”. Meanwhile, Keith Alan, co-founder of Material Indicators, pointed out the ongoing struggle to flip a key weekly level back to support, specifically the 0.5 Fibonacci retracement line near $42,500.

Alan commented on the significance of these levels: "If we look at the #Fibonacci levels from the ATH to the macro swing low for #Bitcoin we find ourselves testing support inside the Golden Pocket. That's bullish if the .5 Fib holds and leads to a break out above the .618 level, but at the moment there seems to be a battle to hang."

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