Bitcoin Plummets to One-Month Low, Dragging Crypto Market

Cryptocurrencies experienced a downturn on Wednesday, with Bitcoin tumbling 4.32% to a one-month low of $6,242.80. Ethereum and Ripple also faced declines, falling 4.08% and 5.63%, respectively. The SEC's postponement of a decision on a crypto exchange-traded fund, along with concerns over ETF approval timelines, contributed to the market's decline.

Bitcoin Plunges to One-Month Low as Crypto Market Cap Hits Nine-Month Nadir

New York, NY - August 15, 2018 - Bitcoin has tumbled down 4.32% to a nearly one-month low of $6,242.80 on the Bitfinex exchange, as of 8:25 AM ET. This significant drop has cast a shadow over the entire cryptocurrency market, with the coin market cap plummeting to a nine-month low of $224 billion at the time of writing.

Ethereum, the second-largest cryptocurrency by market capitalization, has also taken a hit, falling 4.08% to $354.43 on Bitfinex. Ripple, the third-largest virtual currency, has decreased 5.63% to $0.33291, while Litecoin has declined by 9.24% to $60.48.

The precipitous decline in the value of digital coins on Wednesday has been attributed to the U.S. Securities and Exchange Commission (SEC) postponing its decision on a crypto exchange traded fund (ETF). The SEC has announced that it will decide by the end of September if VanEck Associates and Solid Partners can list their Bitcoin-backed ETF, but this delay has dampened investors' optimism. The SEC has already denied a similar ETF proposal in July, and nine other proposals are currently under consideration by the agency.

The cryptocurrency market had experienced a brief surge earlier this month on anticipation that a Bitcoin-backed ETF could be approved this year. However, some analysts have cautioned that a digital asset ETF is unlikely to receive regulatory approval before 2019. This has led to a sell-off by investors who were hoping to capitalize on the potential approval of such an ETF.

In other cryptocurrency-related news, the blockchain company Tezos Foundation is facing an ongoing civil lawsuit that alleges the company violated U.S. securities laws. A motion to dismiss the case was blocked by a federal court judge on Wednesday. Tezos is the first blockchain-related company to be hit with a class-action lawsuit. The company's initial coin offering (ICO) raised $232 million in July 2017. The defendants in the lawsuit argue that the ICO does not fall under the jurisdiction of the SEC because it was administered by a Switzerland-based company. However, the judge has ruled that the involvement of U.S.-based company Dynamic Ledger Solutions makes the two companies interconnected and has denied the motion to dismiss.

The cryptocurrency market is currently experiencing a period of uncertainty and volatility, with regulatory concerns and the SEC's delay in approving a Bitcoin-backed ETF weighing heavily on investor sentiment. It remains to be seen whether the market can recover from this recent downturn or if it will continue to decline in the coming weeks and months.