Bitcoin is crashing to year lows after the latest news on ETF approval was interpreted negatively.
The downtrend for crypto has been firmly reestablished. Bitcoin is currently at $6,300 having tested a low at $6,095.
The recent rally has evaporated as a overoptimistic expectations around the proposed VanEck Solid X ETF, for which the date for the consideration of approval has been pushed back to September.
Although bitcoin is off more than 10%, alts are even deeper in the red with false of 20% in many cases.
XRP, EOS, IOTA and Monero are all down by 20% according to coinmarketcap.
The prediction by BitMex chief executive Arthur Hayes that the rally was likely a fake has proven to be correct. He also predicts a fall to the $5,000s, indeee he welcomes it as conclusive evidence of bottoming.
Long leveraged positions being liquidated are partly to blame for some of the hurt but the failure to hold $8,000 as momentum petered out on falling volumes.
For now the positive news that’s been hitting the crypto sector is being disregarded by market participants.
The crypto market is closely held with just an estimated 1,000 holders of 40% of bitcoin supply and given the tiny volumes compared to mainstream markets, it doesn’t take many sellers to push the price lower.
The $5,000s level will likely see heavy buying as this was the price range before the parabolic takeoff to near $20,000.