Bitcoin price reached new all-time high at $1,300 on April 26. This happened some times before the decision of the United States Securities and Exchange Commission to disclaim the Bitcoin Exchange Traded Fund, COIN, created by the famous Winklevoss brothers. Many analysts believe that the current surge in Bitcoin price was resulting from the decision of the United States Securities and Exchange Commission to examine the Bitcoin Exchange Traded Fund, COIN, once again. The commission accepted a petition submitted by BATS Global Markets and started a one-month process to check the concept of the Bitcoin Exchange Traded Fund created by Winklevoss twince.
Thomas Glucksmann, head of marketing at Gatecoin, said:
“The information of the review has really excited speculators, although it’s unclear if this will adjust the decision of the United States Securities and Exchange Commission. So the gains within the last 24 hours can be temporary.”
However, the upward trend of Bitcoin price has maintained its momentum during the last week. It is hard to conclude that the United States Securities and Exchange Commission’s current ruling caused a surge in Bitcoin price because the demand for an Exchange Traded Fund drastically reduced after its initial denial. Bitcoin price recovered after the denial of the COIN Exchange Traded Fund.
Therefore, while the Bitcoin Exchange Traded Fund re-analyzing process can be one of the key factors to have an effect on Bitcoin’s price, it isn’t the driving factor. However, it is probably that the arbitrage within the United States marketplace due to Bitfinex and other bitcoin exchanges’ incapacity to process withdrawals and deposits in fiat currency is causing Bitcoin price to grow at a rapid rate. Bitcoin price within the United States, which holds 26.6 % of the worldwide Bitcoin exchange marketplace proportion averaging at $1,315. From the other side, Japanese Bitcoin exchange marketplace is demonstrating an average price of $1,297.
Competitors within the United States Bitcoin exchange marketplace such as Bitstamp expressed their worries over the modern Bitfinex problem and its war with its intermediary banks. Nejc Kodric, chief executive officer of the main United States exchange Bitstamp, noted that the latest Bitcoin trend isn’t natural. Moreover, it demonstrates an excessive degree of instability.
Nejc Kodric stated:
“There are three things that an exchange can have problem with. The first is having a hack, the second factor is being shut down or anything around regulators and the third is getting your accounts shut down. You could survive the first two but the third is a huge one. That’s a lethal injection for an exchange.”
If one among the biggest exchanges within the United States and the second biggest Bitcoin exchange marketplace in the world demonstrates a $100 premium, it’d possibly act as a main aspect of Bitcoin price. Some analysts predict Bitcoin price will decline within the short-term due to this inorganic increase.