Bitcoin (BTC) has dropped to US$9,300, demonstrating another 3 percent decline in value over the past 24 hours after failing to push past the US$10,000 support level. The rest of the cryptocurrency market followed the short-term price trend of bitcoin and has dropped more than US$20 billion overnight.
On May 5th, the global average BTC price was less than US$100 away from achieving the US$10,000 mark, as regions such as Hong Kong, Japan, and South Korea with premium rates already surpassed US$10K. However, bitcoin failed to secure the US$10,000 global mark and immediately declined by around 3 percent, to US$9,600.
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Traders remain optimistic regarding today’s Ethereum (ETH) hearing at the US Securities and Exchange Commission (SEC). Blockchain development studio founder Joseph Lubin of ConsenSys firmly stated they’ve done sufficient due diligence prior to the launch of ETH to ensure that it is not categorized as a security and remains compliant with existing regulations.
If the SEC declares Ethereum is not a security, as it did with bitcoin, Lubin says it will allow the entire market to recover and increase demand from investors for cryptocurrencies like bitcoin and Ether.
Previously, SEC chairman Jay Clayton said that a token or a cryptocurrency can be considered a security if it is issued by a single company and if the issued digital asset directly affects the organization in a positive way.
Depending on of the SEC the statement later today, the short-term price trend of Ether and tokens could change drastically. If the SEC declares that bitcoin is not a security based on existing regulations, as the majority of developers, analysts, and investors expect, the value of tokens and Ether will likely surge by large margins in the upcoming weeks, as occurred with bitcoin earlier this year.
ETH was not created by a commercial company, but rather by an open-source development team and its code is being written by an open group of developers without the presence of a centralized team or commercial company.