On Aug 8, bitcoin price fell sharply after the U.S. Securities and Exchange Commission (SEC) decided to delay a decision on the proposed VanEck Bitcoin exchange-traded fund (ETF) to Sep 30. This would have been the first financial product on bitcoin trading. Bitcoin prices fell to $6,346.7 as of 6.45 a.m. EST on Aug 9. As a result cryptocurrency markets too fell sharply.
On Wednesday, bitcoin price hit a three-week low as the last time it traded below $6,400 was on Jul 16. Understandably, the bitcoin market continues to be volatile, with prices further declining on Aug 8. Bitcoin price has been trending down since the beginning of this year after hitting a record high in December 2017.
That said, it somewhat recovered in June after falling below $6,000. This saw a number of graphics chips manufacturing companies gaining on the bitcoin rally. However, now that the decision has been delayed, it has made digital currency traders once again jittery.
VIDEO SEC Delays Bitcoin ETF Approval
Bitcoin price fell sharply on Aug 8 after the SEC decided to delay a decision on the proposed VanEck Bitcoin exchange-traded fund (ETF) to Sep 30. Consequently, cryptocurrency markets too fell sharply. This isn’t the first attempt to push a bitcoin ETF. VanEck had earlier tried to roll out a bitcoin ETF twice but was rejected on both the occasions.
The SEC’s decision to postpone the decision made digital currency traders jittery, leading to falls in bitcoin prices. Bitcoin, which is the world’s largest cryptocurrency by market cap, has had a rough year so far after reaching an all-time high of nearly $20,000 in December 2017.
Hopes were high about a probable bitcoin ETF debut this year since December 2017, when Cboe Global Markets launched three bitcoin futures contracts on the Cboe Futures Exchange. That said, bitcoin price started soaring once again in June on renewed hopes that the SEC would finally be allowing a bitcoin ETF.
However, by postponing its decision once again, it seems, SEC is still stringent on ETF launches. SEC is worried about extreme price volatility in cryptocurrencies and liquidity in bitcoin-related funds, with several central banks issuing warnings against it.
Time for GPU Makers to Shift Focus?
One of the biggest gainers from the bitcoin gold rush has been the graphic processing unit (GPU) makers. Bitcoin miners have been snapping up GPUs to create server firms, as their processing power has made them ideal for cryptocurrency mining rigs. Until then, GPUs were more focused on manufacturing high-end gaming cards.
Demand for graphic soared with bitcoin and other cryptocurrencies reaching new highs at the end of 2017. This saw both sales and prices of GPUs soaring. GPU makers such as Nvidia Corporation (
NVDA - Free Report) , Intel ( INTC - Free Report) , Micron ( MU - Free Report) , Advanced Micro Devices ( AMD - Free Report) and Hewlett Packard ( HPE - Free Report) made substantial gains during this period. Micron Technology has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
However, with bitcoin and other cryptocurrency prices falling this year, demand for GPUs has declined too, as many are deciding to change their stance. So much so, that NVIDIA has even asked retailers of its hardware to prioritize sales to gamers compared to cryptocurrency miners.
Now that the SEC has postponed its decision on the bitcoin ETF and prices are dipping, digital currency traders are once again jittery. However, it is still too early to assess if this decline will further affect the demand and prices of GPUs. Many analysts believe that digital currency traders are overreacting to SEC’s postponement of the decision on the VanEck Bitcoin ETF.
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