We’re looking at two stories today that relate to the price of Bitcoin. The first is the SEC’s denial Wednesday of nine applications for Bitcoin ETFs (see our first story in today’s digest for more detailed analysis of the decision). The other is the surprising and short lived jump in price that many are saying oddly coincides with an outage at BitMEX due to scheduled maintenance.
First, there appears to be a dissociation between the Bitcoin price from news of these SEC denials. In previous such decisions, the Bitcoin price dropped. This time it did not. We think that’s a healthy development and speaks to the community being in “next!” mode or at least beginning to turn that way. There are other options emerging like the Bitcoin-based exchange-traded note (ETN) that targets American investors and was recently listed on the Nasdaq Stockholm exchange. Why keep banging your head against the wall when there’s an open door?
Coindesk reports that the SEC will review the decision on a few of the applications, but we aren’t holding out much hope and think it’s still overwhelmingly likely that the disapproval will stand.
In other Bitcoin price news, ahead of the SEC ruling, Bitcoin’s price shot up five percent and quickly dissipated. What’s interesting about this is it drew a great deal of attention since it so closely coincided with the BitMEX outage, during which many short positions would have been inactive. This is not the first time a BitMEX outage for one reason or another coincided with a short or long squeeze for Bitcoin.
Our take away is that BitMEX bears watching. We’re sure we won’t be the only ones doing it.