The US is the draining factor in the insane Bitcoin rally

Volatility is an indispensable “specialty” in the crypto world. While some view volatility as a relic of the past, it came back a few days before Bitcoin fell below $ 45,000, sending the rest of the market down. At the time of writing, BTC price has rebounded slightly to $ 45,726, with a slight increase of nearly 1% in the past 24 hours.

Source: Tradingview

There are many people who cite various reasons to explain the above drop. A recent Twitter thread from the Singapore-based crypto fund firm is a case in point. According to the source, the United States played an important role in fueling or exacerbating this upheaval.

QCP Capital argued that the delay in approving Bitcoin Exchange Traded Funds (ETF) along with the events related to Coinbase and SEC “weakened the power of the insane crypto rally.”

Bitcoin ETF in October?

The SEC long delayed the decision to approve the Bitcoin ETF. Although some believe it will be approved in October, QCP Capital is not as bullish.

“The SEC’s negative comments on the Bitcoin ETF show how the market rated it while there are rumors that it will be approved in October, but we don’t know what this is based on.

Although there are many successful Bitcoin ETF applications in other countries like Canada, the US SEC is still as calm as water. Although chairman Gary Gensler said a few weeks ago that he would prefer a futures-based Bitcoin ETF, the agency is still standing.

This delay has a direct / indirect effect on the entire crypto space. QCP Say more:

“In the short term, it is clear that ETF news will continue to play an important role in the overall sentiment.”

“No one may be more secure “

Regarding the second factor, the clash between Coinbase and the SEC is also a big deal for several reasons.

Regarding the SEC’s threat to sue Coinbase if it launches a loan product, QCP said:

“If the SEC takes a negative stance on crypto lending right now, most of the free for profit products in the US will be depleted. That means many of the other directional long-term deals will be eliminated there as well. “

More than that:

“Credit / profit products are the mainstay of many crypto institutions. The high fundamental returns on crypto mean that most institutional alpha strategies also include some form of leveraged market-neutral lending. “

As expected, the company reiterated its belief that an institution like Coinbase is under threat, which bodes badly for the industry as a whole.

“If a US-regulated company that supplies a product that was delivered in the country through the appropriate regulatory route were faced with such tough measures, no one is guaranteed to be safe anywhere.”

What is noteworthy, however, is that the crypto fund also points to a broader, structural problem in the industry: the potential devaluation of crypto licenses.

QCP capital tweets:

“The US cryptocurrency regulatory license always required a substantial premium. This can be clearly seen in the amount of money FTX paid LedgerX last week, despite the very low trading volume. “

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