bitcoin (BTC) fell below $30,000 after the Wall Street open on June 30 as markets panicked over the fate of its first cash ETFs.
Bureaucratic Error May Explain Bitcoin ETF Filing Hiccup
Data of Cointelegraph Pro Markets and TradingView it showed BTC price action plunging lower, briefly reaching $29,500.
The volatility accompanied a report that the United States regulator, the Securities and Exchange Commission (SEC) had rejected applications for the first Bitcoin spot price ETF.
Those apps had started the latest BTC price rally, one that had driven the largest cryptocurrency to new yearly highs.
Related: Why Bitcoin ETF Approval Could Trigger $18 Billion Selling Pressure
claims Per the Wall Street Journal, citing an unnamed source, which had now been returned, saw BTC/USD hit nine-day lows before recovering to hover around $30,000.
The original report described the specific circumstances of the rejection of the applications, and market observers reacted by suggesting that this amounted to little more than a technicality.
The WSJ stated that "the SEC told the exchanges that it returned the filings because they failed to name the spot bitcoin exchange with which they are expected to have a 'watchsharing agreement' or provide sufficient information about the details of those security agreements." surveillance ."
"Asset managers can update the language and resubmit," he added.
I think the market is overreacting here, it seems the “denial” is just a technicality and Blackrock/Fidelity just have to resubmit the Coinbase name as the exchange they have a “watchsharing agreement” with.
— Will Clemente (@WClementeIII) June 30, 2023
"This could even be interpreted as the SEC telling BlackRock what it needs to do to get this done and passed... which is also a positive thing," commented financial commentator Tedtalksmacro. argument in a more optimistic take.
Rate hike bets rise despite PCE data beating expectations
Nonetheless, Bitcoin traded lower by more than $1,000 from the highs of the day at the time of writing.
Related: Bitcoin Speculators Send 35K BTC To Exchanges In New “Rush Flow”
His losses come at a prophetic moment, with the monthly and quarterly candle close expired in a matter of hours.
Separately, US macro data provided more confusion for risk asset markets in general.
The Personal Consumption Expenditure (PCE) index print came in lower than expected and even posted its biggest drop in a year.
BREAKING: PCE inflation, the Fed's preferred inflation metric, falls to 3.8%, below expectations of 4.6%.
Core PCE inflation is now at 4.6%, also below expectations of 4.7%.
This is the biggest monthly drop this year.
The Fed may finally be winning the battle against inflation.
— Kobeissi's letter (@KobeissiLetter) June 30, 2023
However, despite signs that inflation is slowing, markets began to price in a higher probability that interest rate hikes would return in July.
The latest data from CME Group FedWatch Tool put the odds of a 25 basis point increase below at almost 90%.
In response, the financial commentary resource The Kobeissi Letter argued that inflation was simply too high, despite the result.
"Interest rate expectations are RISING after the release of PCE inflation data this morning. But why?" he consulted.
"Core PCE inflation, the Fed's preferred inflation metric, is now UNCHANGED since December 2022. Core PCE inflation is now at 4.6% and remains a major issue for the Fed."
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
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