Bitcoin falls; the Ripple Effect dissipates and drops below $30,000

(Sharecast News) - New falls in the cryptocurrency market. Bitcoin (BTC) drops about 1% and falls below $30,000, while Ethereum (ETH) retreats half a point more and is currently trying to maintain the $1,900 level. The momentum received after Ripple's partial victory over the Securities and Exchange Commission (SEC) has fizzled out, according to analysts. On Monday, the reigning cryptocurrency marked an intraday low at $29,685.78, the lowest level since late June. The reason? According to market observers, the lack of news on Bitcoin spot ETFs.

Edward Moya , senior market analyst at OANDA, believes so, as he noted that BTC "remains anchored" in the range it has been trading in these past few weeks " until the cryptoverse gets an update with any of the latest Bitcoin exchange-traded-fund (ETF) applications."

"We are approaching crunch time for getting the final comments from all the top Bitcoin ETF applications. Bitcoin's range of $29,500 and $31,500 may hold until we get a major crypto headline," he added.

Bitcoin soared above $31,700 last Thursday after the U.S. District Court for the Southern District of New York ruled that Ripple's sale of XRP on exchanges and through algorithms did not constitute an investment contract, although the token could be considered a security. Some experts believe that this second part, which agrees with the SEC, could end up being very damaging for the crypto industry in the US.

In this regard, analysts suggested that Bitcoin may continue to experience declines below this aforementioned threshold until the SEC decides whether to give its approval to one of the multiple Bitcoin spot ETF applications that financial services giants such as BlackRock filed last month. Those applications triggered a sharp mid-June rally in BTC and other cryptocurrencies that craved a price catalyst, though the rebound has slowed sharply in July.

However, analysts stressed that cryptos are unlikely to receive the headline they seek in the coming weeks. Although some analysts such as Moya predicted that BlackRock's ETF could see the light of day before the summer, it seems unlikely that the SEC will move so quickly given the leisurely pace at which other such decisions have been made. Yesterday, the Commission began gathering information and investigating the second proposals from BlackRock and other institutional players.

All in all, other strategists are more positive, like Naeem Aslam, chief investment officer at Zaye Capital Markets, who believes the cryptocurrency queen has "plenty of tailwinds working for it." "We strongly believe that good days are ahead. The Bitcoin rally in real terms hasn't even started yet, and for the time being, the momentum is only building up," he sentenced.

According to the expert, "the news flow is so positive that now we have research papers from MIT showing more positive and favourable aspects of the energy influence that digital gold has." "And when it comes to institutional investors, we have a clear pattern here, and the pattern is that smart money is buying stocks of the companies that are involved in Bitcoin mining, and their clients are ready to pounce once the Bitcoin spot ETF becomes available," he added.

"Among all this optimism, we think that it is highly likely that Bitcoin could easily hit its all time high well before the end of this year, and in the month of December, we could see some really interesting moves that could move the price well above the 100K price mark," concluded an optimistic Aslam.

In other market news, steep declines continue in some of the tokens that benefited most from the Ripple ruling. Cardano (ADA) has dropped nearly 4%, while Solana (SOL) has fallen 6%.