Crypto Hedge Fund Founder Dan Morehead tells Bitcoin Investors to stop Overreacting

Securities Exchange Commission Review Bitcoin Broker Behavior

In general, the SEC has the power to postpone specific decisions if it considers that the proposal is controversial. Fortunately, bitcoin found this as its new support level as it steadily climbed back to settle at around $6,500 where it is now dancing around.

Bitcoin retreated as much as 7% to $6,393.70 at noon in London, extending its 2018 drop to about 55%, according to Bloomberg composite pricing.

Bitcoin is proving itself to be more vulnerable than ever, and its reaction to the latest news is particularly overwhelming - so much so, that one can't help but take Tom Lee's recent words with a grain of salt.

The Bitcoin bulls are suffering right now as the Bitcoin price plummeted after taking a major downward pivot on this Wednesday.

Price moves back to a test of the $6,500 level where support is found now.

"Bitcoin is in dump mode, following the pump run-up on the potential for a U.S. ETF". Since Bitcoin has been created to be an endless resource with a total of 21 Million mineable coins, a higher market capitalization means that the value of a single Bitcoin is going to increase. This financial protection is important since hackers are quite active in the crypto space and Bitcoin ETF is a tempting target. A physical ETF is one where the underlying asset - in this case, BTC - is physically held by the issuing company. "At the moment people tend to overreact about the price and other times get overexcited". Therefore, if the SEC accepts a Bitcoin ETF, it would be a positive step forward for the cryptocurrency industry which could even potentially pave the way for the mass adoption of cryptocurrencies.

As reported by Coindesk, the SEC delayed the decision on a proposed rule change from the Cboe BZX Exchange which if confirmed, will permit the listing of an ETF backed by blockchain startup SolidX and investment firm VanEck.

ETFs are seen as a safer way for investors to invest in bitcoin and cryptocurrency exchanges. Its approval could send the prices to the moon and like it has shown in the last couple of hours its rejection or delay sends the prices plummeting in ways we cannot predict.

"We believe that neither the volatility nor the current volume in the bitcoin futures market will inhibit the creation and redemption process by authorized participants and that these creations and redemptions will keep the proposed ETF's market price in line with its NAV".

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