Over the course of the last few days, after the market capitalization had suffered enough, Bitcoin decided to lead the currencies and drive the market capitalization to a better state by the high dominance factor. The attempt to push the market capitalization to a better height seemed to be successful for a while until the rumor about Goldman Sachs was spread that they were backing away from their plans of making a cryptocurrency desk. The main problem that caused the sudden plunge was the apparent lack of institutional trust for the overall cryptocurrencies, Bitcoin in specific. The premium currency was trading at almost $7,400, barely recovering from all the loss that it had suffered over the past month or so, when the rumor hit pulling down the currency to more than 15% again in a single day.
Evident from the BTC graph is the fact that the individual growths, stabilization and plunge in the prices of BTC are quite coherent with the market capitalization as the high dominance factor of BTC is making it the driving force of the market capitalization.
Before the recent plunge, the market capitalization revived itself from the lows of $196 billion to $240 billion, regaining its value. But the recent plunge has hit the market capitalization hard in the neck pushing it back to the level where it barely floats over $200 billion.
The premium currency lost most of its regained value and is trading at almost $6,470 as of press time.The evident issue that arises is the issue of institutional support, the institutions are skeptical about diving into the crypto world and are causing the currencies to suffer. Most of the experts of the industry have SEC to blame for this. Thomas Power told BlockPublisher in an interview a few days back,
We’re heading for $3,000 before ETF approval.
To make a better brand name and for the institutions to have confidence in the currency, the approval of the ETF is the major step of the ladder. Once the ETF is approved, the signs of these fluctuations, surges and plunges would hopefully be eliminated. The ETF proposals are expected to be accepted in the beginning of 2019,
SEC will give BTC brand confidence in 2019, rest will follow in 2020 post crash.
This shows positive signs for the crypto community and investors which have been quite bearish relating to the valuation of the cryptocurrencies. There are even analysts and experts who’ve been too positive relating to the ETF. Talking to BlockPublisher, David Gokhshtein, a well-renowned crypto enthusiast, entrepreneur and influencer said that he hoped that the newly elected SEC commissioner, who also happens to be pro ETF, would have a contribution in getting the ETF approved in this year.
We might get an ETF passed this year. Elad Roisman, who’s been named the new SEC commissioner, is pro-crypto and might want to make a name for himself. What better way then getting a BTC ETF passed?
Though if it doesn’t happen this year, I definitely see it happening in 2019.
The point of concern for most of the analysts and experts now a days in the approval of the ETF, everybody in the community has eyes on the SEC body and the hopes are up. How long would the SEC take to take surveillance measures for the fraudulent and manipulative activities in the crypto world, and if not taken, how long would they take to actually approve the proposals? Only time can tell.