From the point of view of the Securities and Exchange Commission (SEC), applications for bitcoin-ETFs need to be finalized. The Bitcoin market reacted to this news by dropping the price of the asset to $29,500.
The Wall Street Journal, citing an unnamed source, said that the SEC has returned the application for bitcoin-ETF for revision. This caused the BTC/USD asset to reach a nine-day low before recovering to the $30,000 level.
According to the WSJ, “The SEC told the exchanges that it was returning applications because they did not name the specific spot bitcoin exchange” that the applicants will work with, and also did not disclose the mechanism for this cooperation.
“Asset managers can update the text and reapply,” SEC officials added.
“This could be interpreted as the SEC telling BlackRock what needs to be done to get things done and get approval — that’s even positive,” tried console your twitter followers financial analyst Tedtalksmacro.
Road spoon to dinner
The WSJ released the news at the “right time” as monthly and quarterly candles close today. In addition, the publication was timed to coincide with the opening of the US market.
Against this background, US macroeconomic indicators bring additional uncertainty. The Personal Consumption Expenditure (PCE) data was lower than expected and even showed the biggest drop in a year.
However, despite the clear signs of slowing inflation, experts considered that there is a high probability of a new increase in interest rates in July.
The latest data from CME Group’s FedWatch instrument puts the probability of the next 25 basis point upswing at nearly 90%.
Financial Expert Kobeissi Letter thinksthat this paradoxical reaction can be explained by the fact that inflation remains too high.
“PCE core inflation is now at 4.6%, which is still a major problem for the Fed,” he said.
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