Cryptocurrencies continue to trade sideways, led by Bitcoin hovering near the 26,000 level and Ethereum at $1,640.
This coldness continues in cryptocurrency market trading amid low traders’ sentiment, with continued uncertainty about the future of the regulatory environment for this market, especially in the United States.
As for new regulatory developments, Grayscale stated yesterday that there is no valid basis for the Securities and Exchange Commission (SEC) to refuse to convert the Grayscale Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF) and that the commission should not significantly distinguish between those spot ETF and funds that are based on Bitcoin futures contracts in holdings, or exchange-traded product funds (ETPs), that are already traded in the market.
This talk comes in the same week in which the SEC delayed the decision on a number of applications to launch spot Bitcoin funds, including those requests from major asset managers from BlackRock and Fidelity.
It seems that the news about the authority’s procrastination in approving the launch of Bitcoin ETFs continues to weigh on market sentiment.
While we have witnessed a slight increase in the number of open interests for Bitcoin over the past two days, reaching approximately 7.132 million positions, this level remains near the lowest levels that we have not seen since last May, after the sharp decline that we witnessed last August, according to CryptoQuant.
On the other hand, cryptocurrencies may face more pressure as concerns return again about the health of the global economy, with more negative numbers that we witnessed yesterday morning from China, which indicated slower than expected growth in services activities during the month of August.