Looking at the Bitcoin (BTC) charts this morning (UTC + 3), we find that the King of Crypto has been undergoing some considerable correction from the $8,000 levels that we had come to be accustomed to. The King of Crypto broke this level one week ago on the 24th of July. Since then, it dipped to $7,880 on Friday 27th July, only to go back to levels above $8,000 over the weekend.
However, BTC slipped from this level yesterday, Tuesday 31st July, 2018 and has continued on a downward trend since then. BTC is currently trading at levels of $7,663. The King of Crypto has declined by 5.26% in the last 24 hours and at the moment of writing this. Its lowest value in a week was experienced only hours ago when it touched $7,526.
The total crypto-market capitalization has also dropped significantly. The highly anticipated $300 Billion total market capitalization was reached on Thursday the 26th of July. The highest value on that day was approximately $304 Billion. By Monday morning, this total market capitalization had dropped to $297 Billion. It is now at levels of $274 Billion at the moment of writing this. This is a drop in value of $23 Billion in 2 days.
Possible reasons for the decline
The first reason on every crypto-trader’s mind, is the rejection of the Bats ETF by the SEC last Thursday, 26th of July. This is the ETF that had been sponsored by the Winklevoss Twins. What then proceeded is that the markets briefly declined as traders were confused as to which ETF was rejected. Many thought that it was the highly anticipated CBOE ETF. This confusion has since had an effect on the crypto markets as it sidelined Bitcoin’s momentum in the markets for a whole day.
A second reason could be the effect of news hat authorities in South Korea plan on ending tax benefits for cryptocurrency exchanges. These tax benefits are currently only granted to small businesses in the country. According to a new proposed revision of the existing tax law, crypto exchanges will no longer be classified under startups or small and medium enterprises (SMEs). These small businesses usually have the opportunity of claiming tax cuts of up to 100%. The new revisions are meant to be presented to the National Assembly by August 31st.
In conclusion, Bitcoin seems to have been impeded briefly from its pending Bull Run in the crypto-markets. Any additional upward mobility of BTC will be dependent on new volumes coming in as well as good news such as the SEC approving the pending CBOE ETF filing.