Bitcoin price LIVE: BTC moving towards $10,000
8.30am MORNING HEADLINES
Good morning, and welcome to our rolling coverage of all things cryptocurrency, including price, regulation, innovation and financial crime.
Bitcoin is priced at $8,349 this morning with ethereum rising to $475 and ripple suprisingly flat at $0.45.
The Securities and Exchange Commission (SEC) has decided to play it safe after announcing a delay on its ruling on the approval to a rule change relating to five bitcoin ETF applications.
Once regulatory issues are addressed, the potential for distributed ledger technology and any related digital asset will finally begin to be realised
Crypto traders around the world were optimistic over the pending decision from SEC over the approval of a much-hyped ETF that would mark the biggest step yet for digital assets into the centre-ground of mainstream finance.
A bitcoin ETF (exchange traded fund) would mean people are able to buy into bitcoin without having to deal with online exchanges that suffer from credibility issues and lack of regulation.
In February this year JPMorgan broke the negativity cycle to cite the potential of a bitcoin-based ETF.
The bank described it as the “holy grail for owners and investors.”
However, yesterday’s statement from the SEC said: “The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.”
Zach Fallon, a former SEC lawyer, Principal at blockchain law firm Blakemore Fallon & Co-founder of Ketsal Consulting told Express.co.uk that the move towards recognising “the potential for distributed ledger technology” has finally started.
He said: “The most important takeaway from the past year should be a market-wide appreciation for the fact that the SEC is not going to abdicate its regulatory responsibilities in light of recent technological advancements or the investment opportunities they present. Nor should it.
“This means that the market will now enter into a phase of compliance where securities laws issues and other regulatory concerns are baked into digital asset business models from the get-go, as opposed to grafted in post hoc.
“And, once regulatory issues are addressed, the potential for distributed ledger technology and any related digital asset will finally begin to be realised.”
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Updates below throughout the day….
8.40am – Congress and crypto
Prof. Paolo Catalfamo, founder and chairman of Palladium, told Express.co.uk that there is growing realisation that bitcoin and its peers are not going away.
He said: “Efforts from Congress to consider whether cryptocurrencies can be categorised as real money, and regulated, are a step forward but we are stuck with an enforcement structure not yet equipped to deal with such a new asset class.
“Cryptocurrency is already a $300bn market despite facing significant obstacles with lack of transparency or liquidity, and interest will continue to grow. While there are pockets of regulation emerging, the approach is too splintered, leaving investors exposed.
“If we can create an ecosystem which is 100 percent regulation compliant, with clear and joint guidelines, we can help promote accountability within the market without stamping it out altogether.”
10.18am – Bloomberg pessimistic over ETFs
Bloomberg Intelligence analysts don’t see a decision on ETFs coming soon.
In an atricle titled – “A US Bitcoin ETF launch in 2018? Good luck with that one” the US platform reports: “Widely anticipated as a catalyst to jolt Bitcoin out of its bear market, an ETF launch for the cryptocurrency in the US this year is unlikely, in our view.
“The SEC is increasingly sensitive to public opinion and well-aware of the potential market impact. Providers are scrambling for first-mover status, which may result in more nuanced, longer-term regulatory guidance.”
Bitcoin price LIVE: BTC slips from high
11.20am – Calm down ‘bumpy road’ ahead
Ed Cooper, Head of Mobile at Revolut tells the crypto community to remain calm, despite the recent price rise – there’s a “bumpy ride ahead”.
He said: “This recent rise in the price of Bitcoin is most likely the result of a short squeeze and probably not related to any specific news story.
“An initial spike in the price caused by short traders closing their positions prompts other retail investors to momentum trade which adds to the initial price movement. At this point it’s far too early to tell if this signals a long term price reversal or just more day to day volatility on low volume.
“Looking to the future though, the amount of capital and innovation in the space is reminiscent of the early days of the internet, so the future is looking bright although the road upwards is definitely going to be a bumpy ride.”
Bitcoin price LIVE: Optimism has returned
12.18pm – No insider trading at Coinbase – CEO
The lingering accusation that Coinbase employees engaged in the improper trading of Bitcoin Cash has come to an end.
The biggest US cryptocurrency exchange has concluded no wrongdoing took place , after surge in the price of Bitcoin Cash hours before the company announced the addition of the asset.
A spokesman said: “We would not hesitate to terminate an employee or contractor and/or take appropriate legal action if evidence showed our policies were violated.
“We can report that the voluntary, independent internal investigation has come to a close, and we have determined to take no disciplinary action.”
Bitcoin price LIVE: on death and bubbles
12.56pm – BTC dips
Bitcoin is down $212 on the day so far.
12.59pm – Bubbles and death
Liina Laas-Billson, Chief Business Development Officer, Black Insurance – a six year crypto veteran – spoke to Express.co.uk about just how many times BTC has been declared “dead”.
She said: “Historically, cryptocurrencies have gone through many ‘bubbles’ already in their short life cycle.
“The previous Bitcoin boom resulted in the price crashing 80% from an all-time high of over $1000 per bitcoin. It took 3 years to climb back up to the previous price rate. By the end of 2017, the price of Bitcoin skyrocketed to nearly $20,000. If we assume the same thing to happen in the future, its price could reach somewhere near $80,000 in 2021.
“This is enough to make investors very excited.”
Ms Laas-Billson has “lost count” of how many times bitcoin has been “declared dead”.
She adds: “The negativity around the cryptoworld can be compared to the negativity towards the internet in the 90’s. Both have sailed on despite the bad press.
“There are a lot of fraudulent crypto projects out there, but equally, there is also a new wave of start-ups that are using the blockchain to revolutionise the way we do things online.
“Overall I would say, looking past all the doom and gloom, the future of cryptocurrency seems bright.”
Bitcoin price LIVE: BTC missed out on SEC decision
2.18pm – Bitcoin misses out on ‘$50k’ price spike with ETF uncertainty
Shoaib Abedi, Director at ICM Capital told Express.co.uk that the SEC has only “delayed” the decision on whether to approve five bitcoin-related ETFs by Direxion Investments till 21st September and is still welcoming public comments regarding the matter of approving Bitcoin ETFs.
He said: “The majority of the comments show that people are happy and excited about the ETFs, why? Because a lot of people believe that it will be a good investment opportunity and will eliminate the security risk of holding cryptocurrencies.
“Moreover, people who already own Bitcoin or another cryptocurrency at higher price levels wish that the ETF could boost prices and repeat the CBOE Future contract scenario.”
So how high could the price of BTC go if the SEC changes its tune on 21st September? Mr Abedi says that gold offers a potentially equivalent scenario.
He said: “Analysts are comparing the era where gold ETFs were introduced to the Bitcoin ETFs and assume that the bitcoin price could surpass $50,000.
“If the ETFs were able to attract institutional money, it can be expected that bitcoin will retest its all-time high.”