Why has Bitcoin been ranging between widely different values?
One analyst is making news suggesting that the Winklevoss ETF application is part of that timeline.
Cointelegraph reporting by William Suberg today cites comments by Willie Woo – who notes that volatility seems to have increased for BTC after the denial of the Winklevoss ETF.
“According to Woo’s chart, the ETF denial formed the definitive reversal of lessening volatility which had characterized Bitcoin since 2012,” Suberg writes. “Thereafter, volatility increased, albeit not to the extent seen during that year. Further ETF rejections similarly failed to produce the same price impact seen in March 2017. As Cointelegraph reported, volatility nonetheless remains a point of reflection for market participants keen to attract more new investment into the cryptocurrency space.”
Subsequent reporting shows the Winklevoss twins tried again, and were denied a second time.
Our prior reporting points out that in rejecting various Bitcoin ETF proposals, the SEC has cited a lack of qualifying and verification vehicles in broader markets.
So when the Winklevoss twins or anyone else submit a proposed rule change, the SEC has been shaking its collective head ‘no.’
CNBC coverage of one of the Winklevoss proposals shows the SEC did not buy the idea that certain Bitcoin markets such as the Gemini Exchange “are uniquely resistant to manipulation.”
If, as Woo says, the ETF denial reversed a trend in stability, that explains why we’ve seen Bitcoin at $7,500 one day and near $11,000 the next day – by contrast, there were months last year where Bitcoin chugged along at $6,500 and really didn’t budge much at all.
Investors would be wise to note this new Bitcoin volatility and assume that it’s not going away anytime soon. Pick your buying price and hold on tight!
