Bitcoin prices collapsed Wednesday, falling 10% after the Securities and Exchange Commission delayed its decision on the proposed bitcoin-related exchange-traded fund submitted by VanEck and SolidX.
The world’s biggest digital currency has lost $14 billion in value since the news broke late Tuesday in New York, trading from above $7,100 to an overnight low of $6,133.08. The price of a single bitcoin BTCUSD, -0.07% last changed hands at $6,309.43, down 8.2% since Tuesday at 5 p.m. Eastern Time on the Kraken exchange.
The delay is a further blow for the digital-asset community that had hoped a ruling in favor before the mid-August deadline—45 days after the latest submission to regulators. However, onlookers will now have another seven weeks in limbo after the SEC said it had pushed decision day to Sep. 30.
One analyst who had remained skeptical despite the July rally in bitcoin says Tuesday’s news opens up the possibility of a new low for 2018.
“It is hard to find anything positive to say about bitcoin,” wrote Jani Ziedins of CrackedMarket in a morning blog post. “Failing to hold $8k, it didn’t take long for us to crash under $7k as any hope brought about by the latest rebound vanished faster than it appeared. If we cannot retake $8k support over the next few days, expect us to tumble through $6k support and start making new lows.”
Crypto market cap hits 2018 low
The overnight move in bitcoin has pushed the value of all cryptocurrencies to a new low for 2018, according to data from CoinMarketCap.
Plagued by exchange hacks and regulatory concerns, digital assets have been in a continual decline for the most part of 2018, falling to $221 billion Wednesday, its lowest level since Nov. 7, 2017, and $600 billion off its all time high.
Despite bitcoin’s struggles, its share of all cryptocurrencies has risen 10% in 2018 and now accounts for 49% of the market.
Altcoins, or coins other than bitcoin, bore the brunt of today’s selloff, with all showing significant losses Wednesday. Ether ETHUSD, +0.58% is down 7.1% to $357.23, Bitcoin Cash BCHUSD, -0.91% is trading lower by 12% at $592.20, and Litecoin LTCUSD, -0.32% is down 8.8% at $63.33. Ripple’s XRP XRPUSD, +3.15%is the worst-performing of the major altcoins, trading to 33 cents, down 14.2%.
Bitcoin futures closed well lower Wednesday. The Cboe Global Markets Inc.’s August contract XBTQ8, -0.20% finished Wednesday down 7.9% at $6,307.50 and the CME Group Inc.’s August contract BTCQ8, -0.55% finished the day down 9.4% at $6,330.