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Bitcoin Attempts $7,500, Possibly Driven by SEC Approval of BTC Fund

December 7, 2019 at 0:06 by Matt Jackson

The Bitcoin price has made another push at $7,500, having broken through earlier in the day but fallen back below the key level. News that the United States Securities and Exchange Commission (SEC) has approved the issuance of a Bitcoin backed fund could fuel further price rises.

Having started the day just above $7,400, prices were trading between $7,480 and $7,390 most of the day. However, at roughly 18:00 GMT, prices spiked, rising $80 in 6 minutes. A 1% price rise isn’t extraordinary by Bitcoin standards, even in this short a space of time, but it coincided with news that the SEC had approved the launch of the NYDIG Bitcoin Strategy Fund. The fund does not detail a minimum investment and has listed a maximum offering price of $10 per share.

The news means that institutional investors, and potentially other investors, would be able to invest in the cryptocurrency without having to purchase the coins directly. This has often been cited as being a major catalyst in further price advances. It is often said that once institutional money is coming into the space, it means that the market will see the kind of price rises that were evident in 2017 when the asset rose from $800 to peak at nearly $20,000 in December.

However, today’s spike does not salvage what has been a trying few weeks for the digital currency. It is down approximately 3% compared to seven days ago and down 20% from 30 days ago.

Most other cryptocurrencies have remained roughly equal, although some were enjoying gains earlier in the day. In the top 20, the only coins to make any real movements have been by Tezos (XTZ), which has gained 6.79% and is trading at $1.38; Chainlink (LINK), which is now changing hands at $2.08 having gained 2.38%; and Cosmos (ATOM) which has risen 3.76% to $3.66. Stellar (XLM) was the only coin to see any real losses on the day, falling 1.48% to $0.055.

Although Bitcoin has been trading in a relatively tight channel over the past few days, if the market reacts strongly to the SEC news, that could be about to change.

At 23:30 GMT, Bitcoin (BTC) prices had risen by 1.11% on the day, and cost $7,523.56. The second-biggest cryptocurrency, Ethereum (ETH), had lost a little, falling 0.08% to $149.00 and is still waiting to retake the $150 resistance level. Ripple (XRP) rose 0.75% to trade at $0.225 and Bitcoin Cash (BCH) slipped 0.22% and is now changing hands at $212.80. Litecoin (LTC) still has some way to go to break above the $50 mark, but made modest inroads today, rising 0.89% to $45.57.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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