BTC Price Soars Despite SEC Delaying Some ETF Decisions – Blockchain News, Opinion, TV & Jobs

Notably, in September, BTC recorded a 4% price increase, marking the first September price increase since 2016. This welcome development brought relief to digital asset market capitalizations following two consecutive negative months in July and August.Bitcoin is leading this upward trajectory, as evidenced by the Bitcoin Dominance Index, which measures the relationship between Bitcoin’s market capitalization and the overall digital asset market capitalization. Bitcoin dominance rose to 50.4% from 49.9% at the end of last week, demonstrating its relative strength compared to the broader digital asset market.

Despite encouraging price action, trading volume was noticeably down. Daily trading volumes on centralized exchanges, measured over a seven-day period, continue to show limited activity, with cumulative volume last week hovering around $10.5 billion, closely mirroring the figures recorded seven days earlier. On a monthly basis, trading volume on centralized exchanges reached approximately $312 billion in September, a 26% decline compared to the $423 billion observed in August.

Low trading volume usually coincides with reduced market volatility. This correlation is confirmed when examining BTC’s 30-day volatility, which has decreased by approximately 23%. This is the third lowest level since the indicator was introduced in 2017.

The U.S. Securities and Exchange Commission (SEC) has shifted its focus to the topic of exchange-traded funds (ETFs), recently making a decision regarding the approval or rejection of certain Bitcoin spot ETFs, including 21Shares, Blackrock, Valkyrie, and other Bitcoin spot ETFs. It was announced that it would be postponed. Bitwise. The announcement came weeks ahead of the original deadline. The SEC will likely postpone all filings scheduled for October and set the next deadline for mid-January. After that, most filing deadlines were set for mid-March.

Meanwhile, Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) continue to maintain stable discounts of around 20% and 28%, respectively. These discounts have shown minimal change over the past four weeks, contrasting with the significant contraction observed throughout the third quarter. This discount reflects neutral sentiment regarding investors’ expectations of the eventual conversion of these trusts into ETFs, with investors awaiting a final decision from the SEC.

Despite months of low both volatility and trading volume, the upcoming second quarter is likely to be a catalyst for digital asset markets, sparking a resurgence of interest and trading activity. Especially since these important moments are so close together. The final deadline for approval or rejection of most Bitcoin spot ETFs is scheduled for mid-March, followed by the Bitcoin halving in mid-April 2024.

A Bitcoin halving event involves an event where miners’ rewards for mining Bitcoin are halved and has traditionally been a harbinger of an upward trend in the months before and after the event. A combination of factors, including the SEC’s impending decision on ETFs, has shifted focus and expectations significantly to the first and second quarters of 2024.