So lately I have been monitoring the market since the news about SEC postponing ETF proposal because they're kind of a big deal in the crypto world right now. Just like the recent news that caused the drastic fall of Bitcoin and other cryptocurrencies included.
"On Thursday, the SEC announced a postponement in the decision-making process for seven proposed exchange-traded funds (ETFs) related to Bitcoin. The Bitwise Bitcoin ETP Trust now has an extended decision deadline of October 16, while the decision deadlines for the BlackRock, Fidelity, VanEck, WisdomTree, and Invesco Galaxy Bitcoin ETFs have been pushed to October 17."
After this news, I went back to my chart to some coins I have been observing for quite some time and saw that the news did not only affect BTC but also other cryptocurrencies like BLUR, XRP, OP, BTC, and ETH. Let me break it down in simple terms and see how it could affect some traders or investors out there.
Bitcoin Leads the Way: When something happens to Bitcoin, it often has a ripple effect on the whole crypto market. It doesn't mean they're directly tied, but they tend to move in sync.
Spreading the Waves: Now, these ETF decisions mainly focus on Bitcoin, but here's where it gets funny - what happens with Bitcoin can influence how people feel about the entire crypto market. So, if Bitcoin has a wild day, it can stir things up for other coins too. Now few hours ago, Two whales jointly transferred out 16.5K ETH ($27.2M) after the market dipped. Was it a coincidence?
Playing It Safe: If you're into crypto trading, you might have heard about diversifying your investments. People do this to reduce risk. But remember, even if you spread your investments, when Bitcoin makes big moves, it can affect all your crypto eggs, not just the Bitcoin ones.
Trader's Game Plan: I know some may ask. What do traders do when these Bitcoin ETF decisions are looming? Well, they keep a close eye on the news. Some might decide to play it safe by temporarily reducing their investment in certain coins. Others might hold tight, depending on how brave they feel and their long-term crypto goals. While some trade it anyway because they're just good with their Spot and futures trading.
How do you play it in this state of the indecisive market, especially with this type of volatility?
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