Bitcoin Dips Below $60K Briefly as SEC Ends Ethereum Investigation: Latest Cryptocurrency Market Update
June has not been favorable to bitcoin, with the cryptocurrency’s price briefly dropping below $60,000 on Monday after showing promise of surpassing its previous all-time high of over $73,000 earlier in the month.
A concerning development for bitcoin investors is the impending distribution of bitcoin owed to former customers of the now-defunct Mt. Gox exchange, with an estimated 140,000 bitcoins expected to enter the market, potentially impacting prices.
On a more positive note, the U.S. Securities and Exchange Commission (SEC) wrapped up its investigation into Ethereum without filing charges against Consensys, a blockchain technology firm. Additionally, Hashdex, a crypto asset manager, has filed for a spot bitcoin-ether ETF, aiming to provide diversification opportunities for investors.
Mt. Gox recently announced its plan to commence the long-awaited process of returning assets to customers in July, more than a decade after filing for bankruptcy due to hacking incidents. The exact amount of bitcoin to be distributed remains uncertain, with estimates varying from 65,000 to 140,000 bitcoins, potentially valued at up to $9 billion.
While concerns exist regarding the potential impact of the Mt. Gox repayments on bitcoin prices, some argue that the selling pressure may be overemphasized, given that creditors have had ample time to sell their claims if needed. This announcement led to a brief dip in bitcoin’s price below $60,000, continuing its downward trend for the month.
According to data from Farside Investors, spot bitcoin ETFs experienced significant outflows over a two-week period, with investors withdrawing a net $1.1 billion from these funds since their approval in January.
The SEC recently concluded its investigation into Ethereum 2.0, with Consensys announcing that the regulator began the probe last year. While the SEC’s stance on whether ether qualifies as a security remains unclear, the closure of the investigation suggests a leaning towards treating ether as a commodity, aligning with the Commodity Futures Trading Commission’s classification.
Hashdex has filed for a combined bitcoin-ether ETF, the Hashdex Nasdaq Crypto Index US ETF, which, if approved, would be the first in the U.S. to hold both cryptocurrencies directly. The ETF aims to offer investors exposure to the market’s performance through a passive investment strategy, with potential inclusion of other crypto assets in the future, pending regulatory approval.
Market analysts are closely monitoring bitcoin’s price trajectory this week, particularly in light of high bitcoin ETF outflows and the upcoming Mt. Gox distributions. Additionally, all eyes are on the U.S. presidential debate scheduled for Thursday between Joe Biden and Donald Trump, with discussions on cryptocurrencies gaining momentum on the campaign trail.
