The Blockchain Bulletin, Dec 7: SEC Rejects Spot Solana’s ETF Applications

Hey there, welcome back! Here is a recap of all that happened over the last 24 hours in the crypto community. With The Blockchain Bulletin, get to know the latest updates on institutional firms, tokens, market volatility, and even regulatory facts. 

Bitcoin, which traded as high as $103,000, declined to approximately $98,000. The coin’s price could go even lower if regulatory policies change. Crypto analyst Benjamin Cowen pointed out that Bitcoin’s price is near the resistance level through the miner-thermo cap ratio. This ratio will show whether or not the current Bitcoin price is placing pressure on miners.

The second reason for volatility lies in the Bitcoin Liquidation Map – a tool that helps monitor large orders and positions. It highlighted the presence of a large sell wall that caused a temporary decrease in Bitcoin’s value. Such sell-offs often reflect heightened trader activity, particularly among those who make quick moves based on market shifts. The map shows Bitcoin traders the potential large-scale liquidations, which could impact its price. 

However, with Bitcoin still reigning supreme in the world of cryptocurrencies, other coins like Ethereum (ETH) also enjoyed this spike. ETH soared to $4000 due to an increase in on-chain transactions. On the other hand, XRP and ADA experienced tremendous drops. Market observers stated that the situation might worsen for XRP because of Bitcoin’s growth.

On the regulatory front, the U.S. Securities and Exchange Commission (SEC) has rejected two out of five applications for Solana-based ETFs. The regulatory body is also hesitant to approve new crypto ETFs. This highlights the struggle of digital assets to find space within the borders of the relevant financial system. Lack of approval for such ETFs prolongs the use of digital currencies’ entry into the mainstream market, which remains volatile.

On the political side, President-elect Donald Trump has appointed David Sacks as a ‘crypto czar’. Sacks, a specialist in blockchain and digital financial systems, will aid in determining crypto-related policies. On the other hand, the mayor of Vancouver has commended Bitcoin as an innovative financial creation with the potential to transform the world economy. 

However, former U.S. Treasury Secretary Lawrence Summers strongly opposed the idea of Bitcoin being a ‘reserve asset.’ He added that crypto had no weightage like gold and hence was not suitable for such a role. 

In summary, Bitcoin and other cryptocurrencies continue to remain strong amid market sentiment and regulatory challenges. While short-term risks increase the volatility of assets, investors find that they are profitable for long-term investments due to their growth.