Following the US Securities and Exchange Commission (SEC) decision to postpone the hearing on ETFs, the crypto market responded with fear and the price of Bitcoin fell once again.
Investors saw this decision to delay as a preemptive sign for what’s to come, which they fear that the SEC might just say no.
ETFs are widely seen as a key next step to cryptocurrencies’ entry into the financial mainstream. Buying, selling and storing cryptocurrency pose complications for mainstream institutions which are not set up to deal with wallets, private keys and so on.
As it stands now the market has established a new year-to-date low, with the collective valuation of all cryptocurrencies currently sitting at a disappointing $223 billion.
However, Dan Morehead, Pantera Capital’s CEO, explained why he believes that this reaction was a result of the market ‘overreacting’.
According to Dan, the market often overreacts to pieces of news, as the non-stop nature of the industry has worldwide traders making predictions on how a piece of news will impact prices. With this most recent case being no different from any previous occurrence.
Adding further he stated, instead of focusing on this ‘uninteresting’ piece of news, the market should focus on Intercontinental Exchange’s entry into the space. He concluded by stating:
This is huge news… This will have a very profound impact over the next five or ten years for the markets and in my mind, that’s what people should be focused on.