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Bitcoin Falls Below $11,000 as Bulls Grow Weary

Investing.com – Bitcoin fell below the $11,000 level Tuesday, as the U.S. Security and Exchange Commission delayed a decision on whether to greenlight a new investment vehicle to trade the popular crypto.

Bitcoin fell 4.5% to $10,925.

The SEC delayed decisions on whether to approve or reject three Bitcoin ETF proposals.

The proposals for Bitcoin ETFs were filed by Bitwise Asset Management, VanEck/SolidX and Wilshire Phoenix.

A final decision on the Bitwise and VanEck/SolidX proposals are slated for Oct. 13 and Oct. 18, respectively. A decision on the Wilshire Phoenix proposal is expected by Sept. 29, but may also face a further review.

The proposals to start bitcoin ETFs have been touted by some as the catalysts needed to spark a wave of institutional funds into cryptos, particularly bitcoin, at a time when investors are beginning to appreciate the value of the popular crypto as a hedge to traditional assets like stocks.

"With Bitcoin, we’re looking at a really interesting moment in time -- one in which an asset that has been uncorrelated with traditional assets for the past ten years (bitcoin) is beginning to take on the behavior of a safe haven asset (gold)," said Evan Kuo, CEO and cofounder of digital currency firm Ampleforth.

The argument for bitcoin as a safe haven was given further credence on Tuesday as the popular crypto fell in tandem with traditional safe havens like the gold and yen following Washington's decision to delay tariffs on some exports from China.

The remains hope, however, that the fall in bitcoin will be met with support with Goldman Sachs (NYSE:GS) recently encouraging investors to buy the dip, saying the popular crypto is poised for a move higher as long as it does not fall below $9,084.

Other cryptos, while also in the red, fared slightly better relatively to bitcoin; XRP fell 1.90% to $0.2954, Ethereum lost 2.18% to $207.05 and Litecoin was down 1.15% to $84.80.

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