Bitcoin (BTC) fell below $30,000 after the Wall Street open on June 30 as markets panicked about the fate of its first exchange-traded funds (ETFs).
A bureaucratic error may explain the hiccups in the Bitcoin ETF filing
Data from Cointelegraph Markets Pro and TradingView It showed BTC price action heading lower, briefly reaching $29,500.
The volatility was accompanied by a report that the US regulator, the US Securities and Exchange Commission, has denied applications for the first Bitcoin spot ETF.
These apps had triggered the latest BTC price bounce, which sent the largest cryptocurrency to its yearly highs.
Related: Why Approval of a Bitcoin ETF Could Unleash $18 Billion in Selling Pressure
Claims By The Wall Street Journal, which cited an unknown source, has now been recounted, it saw BTC/USD reach a nine-day low before bouncing back to around $30,000.
The original report indicated the specific circumstances of refusing and responding to orders, and market observers noted that this was little more than technical.
The Wall Street Journal reported that “the Securities and Exchange Commission told the exchanges that it returned the filings because it did not mention which bitcoin spot exchange is expected to have a “watch-sharing agreement,” or provide enough information about the details of those watch-taking arrangements.”
“Asset managers can update and rework the language,” she added.
I think the market is overreacting here it looks like “denial” is just a technicality and Blackrock/Fidelity should rename Coinbase as the exchange they have a “watch share agreement” with
– Will Clemente (WClementeIII) June 30, 2023
“This could even be interpreted as the SEC signaling to BlackRock, what they need to do, to go over that limit and agree to it…which is also positive,” financial commentator TedLeaksMacro said. argue in a more optimistic view.
Bets for price hikes are rising even though PCE data beat expectations
However, bitcoin is trading down more than $1,000 against the day’s highs at the time of writing.
Related: Bitcoin Speculators Send 35K BTC To Exchanges In New ‘Happy Flow’
Its losses come early, with the monthly and quarterly candle closing in a matter of hours.
Separately, US macro data provided more confusion for risk asset markets in general.
The Personal Consumption Expenditures (PCE) reading came in lower than expected and even managed its biggest drop in a year.
The Breakthrough: Personal consumption expenditures inflation, the Fed’s preferred measure of inflation, fell to 3.8%, below forecasts of 4.6%.
Core PCE inflation is now at 4.6%, also below expectations of 4.7%.
This is the largest monthly decline this year.
The Fed may have finally won the battle against inflation.
– Kobeissi Letter (KobeissiLetter) June 30, 2023
Despite signs of slowing inflation, markets are beginning to see more of a return to higher interest rates in July.
The latest data from the CME group FedWatch tool Put the odds of a 25 basis point rise after that at about 90%.
In response, the source of the financial commentary, The Kobeissi Letter, said that inflation was simply too high despite the outcome.
Interest rate expectations are rising after PCE inflation data was released this morning. But why?” he – she question.
“Core PCE inflation, the Fed’s preferred measure of inflation, is now unchanged since December 2022. Core PCE inflation is now at 4.6% and remains a major issue for the Fed.”
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