CNBC Fast Money contributor and BKCM CEO Brian Kelly has firmly emphasized that while bitcoin has seen a massive decline in price over the last 24 hours, investors selling the dominant cryptocurrency based on the delay of SEC in approving the first bitcoin ETF are doing it wrong.
Bitcoin Drops 12% While EOS, Bitcoin Cash and Other Tank 20%+
Over the last 48 hours, the crypto market lost $29 billion, as major cryptocurrencies dropped by 10 to 25 percent in value.
While the vast majority of analysts have pointed towards the decision of the SEC to postpone the approval of the VanEck Bitcoin ETF to justify the short-term price trend of BTC, some investors have raised their suspicion on the viability of the claim, especially considering that the delay in the SEC’s decision was expected.
Rather, it is more likely that a large sell-off in the over-the-counter market has caused the market to nosedive.
Regardless, Kelly emphasized that it was not the right move for investors to sell holdings in crypto solely due to the SEC’s announcement on August 7 and that Bitcoin ETFs will not be approved by the end of 2018.
“It [Bitcoin] has had a tremendous run off of $5,800, and that was all really because people thought there was going to be a bitcoin ETF. The SEC came out and postponed that decision. A little spoiler alert, on September 30, SEC will likely postpone in again, because the market is not ready for it and the SEC hasn’t had the answers to their questions yet.”
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