it is now falling after reaching a record level

Bitcoin fell 4% this Wednesday and is approaching $43,000 on the possibility that the SEC, the US financial regulator, will not allow multiple managers to create exchange-traded funds (ETFs) tied to the world’s most used cryptocurrency.

As markets closed in the United States, Bitcoin, down 10%, was at around $42,850, a far cry from the $45,127 it ended at yesterday and the $45,908 it reached during Tuesday’s session.

The setback came just a day after Bitcoin regained the $45,000 level, a price it hasn’t surpassed since April 2022.

Volatility is the dominant note in the behavior of this cryptocurrency as its price fluctuated between $45,500 and $40,970 during today’s trading session.

Analysts attribute today’s decline to the possibility that the US Securities and Exchange Commission (SEC) will not finally approve the creation of ETFs linked to the spot price of Bitcoin in January.

In fact, among the factors analysts cited to explain Bitcoin’s recovery in recent weeks was the belief that the SEC will allow the creation of ETFs this month.

IG’s Diego Morin attributes today’s drop to a report published on cryptocurrency platform Matrixport in which analyst Markus Thielen expects SEC rejection of Bitcoin-related ETFs.

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Contrary to market consensus, Thielen argues in his report that the filings do not yet meet the necessary requirements for SEC approval.

Thielen leaves open the possibility that these requirements could be met over a longer period, especially in the second quarter, although he prefers to move away from ETFs now in January.

Analysts also linked the recovery in Bitcoin prices, which are now truncated, to the proximity of a new halving (reduction in the reward received by the “miners” of this cryptocurrency), originally planned for April.

Unlike what happens with central banks, the creation of Bitcoin is done in a decentralized manner through a process known as “mining.”

“Miners” are users who process transactions using specialized computer hardware and receive bitcoins in exchange for their services.

According to EFE

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