The crypto market in general is dark red today as most assets are experiencing losses upwards to 20% in price. One logical reason for this drop is that bitcoin has lost most of its recent gains and is currently below the $7400 mark. Most in the community are estimating that this drop is due to the fact that a potential bitcoin ETF has once again been slapped down by the SEC, much to the chagrin of the increasingly applauded Hester Peirce of the SEC. Some projects that were hit particularly hard include IOTA, 0x, Bitcoin Gold, Waves, Waltonchain, and Wanchain – all with losses of over 10% to over 21%.
An ETF Paradise Lost
The recent charge up in prices that saw bitcoin reach recent highs of over $8400 was likely caused by hopes that the announcement of a bitcoin ETF was imminent. A number of historical examples exist that would suggest that if a bitcoin ETF were to become a reality the digital asset could see a massive upswing as traditional investment dollars poured in.
Image via coin360.io
Unfortunately for the bitcoin faithful, the ETF is still off the table. At least for now.
One person in particular, however, Hester Peirce of the SEC, had a few sharp words to say about the denial. In an interview with Coindesk, Peirce said that denying a bitcoin ETF will “harm investors because it denies them opportunity.”
Apparently, bitcoin is not ripe enough, respectable enough, or regulated enough to be worthy of our markets. I dissent: https://t.co/gH5zXaKtmj
— Hester Peirce (@HesterPeirce) July 26, 2018
In response to her support of bitcoin and a potential ETF, the crypto community at large has stepped forward and declared Peirce their own personal hero. The SEC Commissioner has suddenly found themselves followed by an additional 10,000 or so Twitter followers in just the last few days. Peirces original response piece published in support of a bitcoin ETF can be found here.
Altcoin Slaughter Continues
The altcoin battlefields are deep crimson today with the blood of lost value. Assets across the board are down, with Ethereum itself dropping below the critical $400 price mark. You can’t spell “slaughter” without “laughter”!
The much-maligned Bitcoin Gold has once again dropped below $25 each, and other bitcoin forks like Bitcoin Cash and Bitcoin Diamond have also suffered some pretty heavy losses. Even the recently successful Ethereum Classic has taken a bit of a hit, dropping down to $14.47.
Another once popular token, OmiseGO, saw more than a 12% loss in price today dropping down to around $5.20 each at press time. On its original launch, OmiseGO averaged around $7 each and had a market cap of over $1 billion. Today that market cap is still an impressive $730 million, but it has also lost more than 25% since those bygone days.
Waves Rides the Market Waves Downward
One asset that was particularly hard-hit is Waves. Having lost a whopping 21.5% in value to $1.79 each, things are certainly looking somewhat grim for the Ethereum competitor.
For those unfamiliar, Waves is a platform that offers “solutions for storing, trading, managing and issuing your digital assets, easy and securely.” Despite this loss, waves is still holding onto a relatively high position by market cap where it currently sits at rank 51.
What’s also surprising is that in just the last few days, Waves has hit a couple of major milestones including its own decentralized exchange moving out of beta to accompany its highly regarded wallet. Therefore it’s entirely possible that this movement in price could simply be related to speculators moving assets into bitcoin and not necessarily indicative of a flaw or mistrust in waves itself.
Whoa! #Waves Client IS OUT OF BETA!
— Waves Platform (@wavesplatform) July 24, 2018
Chaining Down Waltonchain
Another asset that was dragged down is Waltonchain. Today, Waltonchain is down more than 21% and is currently sitting at $3.63. In recent months, Waltonchain has been announcing initiative after initiative and gaining a fair amount of media attention as a result.
However, prices have been on a steady decline since May of this year when prices slipped from $17 to the current $3.50 or so. To make things worse, the asset has lost more than 95% of its value from its peak point on January 27 at a price of $43.89.
Today is indeed somewhat of a dark day for cryptocurrency, but not all is lost. There is simply too much money to be made by whomever is the first to market with a bitcoin ETF. Therefore investment firms and entrepreneurs like the Winklevoss twins simply will not give up, and instead will continue to keep amending their filing attempts until someone is successful.
And once the first group is successful, many others will be sure to follow. Not only that, but this would also likely lead to a chain of events that would result in even more cryptocurrencies getting listed on major stock exchanges in one form or another. Let’s also not forget the potential for retirement account assets to be put into cryptocurrencies en masse.
And with allies like Hester Peirce on our side, an ETF can’t be more than a few years away at the very most. There is just too much money to be made for anything else to happen.