As Christmas draws near, so does the excitement among people with investments in the world of cryptocurrencies. With investor sentiment turning ‘positive’ in financial markets just before Christmas holidays Bitcoin (BTC) The price managed to break above the $50,000 level for the first time in two weeks.
As of press time; Bitcoin is trading at a price tag of $51,031, up 5.22 percent with a market cap of $966 billion. After hitting a record high of $69,000 in November, Bitcoin continued to move sideways, correcting more than 30%.
With inflation reaching new highs and the Fed’s announcement of tighter monetary policies, money; moving from volatile asset classes like crypto and stocks to other safe-haven instruments. While many see Bitcoin as a hedging tool for stocks, it has not been so until now! Ross Mayfield, an investment strategy analyst at Baird, told Bloomberg:
“I see Bitcoin as a high beta risk asset. When the appetite for risk increases, it gets big. And when risk appetite drops, it can drop drastically. It’s not perfectly correlated, it’s definitely too basic for a read, but it’s definitely not a volatility guard.”
SEC Rejects Two Bitcoin Spot ETFs
Today’s price increase U.S. Securities and Exchange Commission(SEC) rejected two Bitcoin spot ETFs. While the SEC showed familiarity with Bitcoin Futures ETFs, it showed a strong objection to the approval of the physically backed Bitcoin ETF.
SEC in the USA; He rejected two Bitcoin spot ETF offers from Valkyrie Investments and Kryptoins, stating that they did not meet the regulator’s requirement to prevent manipulative practices and fraud.
Spot Bitcoin ETF‘s remain the “holy grail” of investment products and this is likely to bring massive liquidity to Bitcoin. Bloomberg Intelligence analyst Eric Balchunas calls the latest rejection a “Scrooge-jection”. He further added:
“The fact that the SEC wasn’t ratifying faster than necessary kept us optimistic about the future, but we’re not sure about 2022 approval right now either.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.