Crypto down trend could continue in coming weeks, says broker

Co-founder of GlobalBlock warns that dramatic price drop in cryptocurrencies could continue in next few weeks. 

The dramatic price drop across cryptocurrencies could continue in the coming weeks after Bitcoin fell to an annual low of $3,309, according to one broker.

David Thomas, director and co-founder of GlobalBlock, highlighted how the crypto market had been relying on a regulatory decision on a Bitcoin ETF, but was left disappointed after news came of another delay.

“The crypto market has slightly been relying on the ETF decision from the SEC and in recent weeks they (the SEC) has made it clear that this may not be for some time with another delay until at least the end of Feb 2019,” he said.

At Consensus: Invest in New York last week, the chairman of the Securities and Exchange Commission (SEC) said custody and price manipulation concerns are the two factors holding back Bitcoin ETFs from being approved in the US.

Meanwhile, reports this week suggested a decision would likely now come in February after a year of speculation surrounding the new products. Thomas added that the sell-off of crypto may continue to the end of the year.

“As we head towards the end of the year it feels as though the sell-off is still to be concluded and as such there is further scope for more downward pressure. On a technical basis, it is conceivable that we could see this down trend continue in the coming weeks, with the next big technical level of support is seen around the $2,580 price area.”