Price action across the cryptocurrency market remains tilted lower as investors and money managers begin to digest the potential consequences if the SEC decides to delay current Bitcoin spot ETF filings.

Cryptocurrency Market Performance, 30-Day Chart – Coin360

XRP and altcoins sell-off after fake ETF filing

The drop in the cryptocurrency market comes during a week in which the US Securities and Exchange Commission (SEC) is expected to review a handful of pending Bitcoin spot ETF applications.

In particular, the securities regulator must decide on applications for the Hashdex and Global X ETFs by November 17. The SEC must also decide on Franklin Templeton’s Bitcoin ETF application by November 21. If not, the deadline would be delayed until 2024.

The market anticipates another delay, according to James Edwards, crypto analyst at Australian fintech firm Finder.

The analyst cited a fake BlackRock XRP fiat filing that caused extreme price swings in the He believes this event will hurt the chances of launching a spot Bitcoin ETF in the US because it supports the SEC’s claims of price manipulation in the crypto industry.

For now, traders are likely taking profits at the current multi-month high prices in the crypto market due to this potentially long wait.

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ETH and BTC ETF euphoria could be fading

Market sentiment soared due to optimism over a possible approval of a Bitcoin (BTC) exchange-traded fund (ETF) as early as November. The euphoria drove the price of Bitcoin to 18-month highs above $38,000. However, the euphoria appears to be waning as the BTC price fell by 4% on November 16 due to low liquidity at higher levels.

Historical Bitcoin profitability by month. Source: New coverage

While the market was primed for an ETF approval ahead of November 17, this seems unlikely as the SEC already delayed Hashdex’s application for a Bitcoin ETF spot conversion on November 15. And while BlackRock doesn’t believe the SEC has any legitimate reason not to approve a cryptocurrency spot ETF, the SEC appears willing to delay it.

On November 15, the SEC delayed a decision on Grayscale’s Ether futures ETF. Some analysts believe the Form 19b-4 filed by Grayscale is a potential “Trojan horse” for the agency.

Futures liquidations bring down the cryptocurrency market

The fall of major cryptocurrencies has caused an avalanche of liquidations across the derivatives market.

In the last 24 hours alone, over $160 million in long positions have been liquidated across the entire crypto market, with $144.3 million wiped out in the previous 12 hours. Cryptocurrency market prices are negatively affected when long derivatives positions are liquidated without buying pressure from trading volume.

Crypto market settlements. Source: Coinglass

Even though the cryptocurrency market is down today, some altcoins have performed well.

Related: Solana (SOL), Avalanche (AVAX), and dYdX Produce Double-Digit Gains as Bitcoin Reclaims $37,000

In the near term, the cryptocurrency market will continue to face multifaceted challenges, and the ebb and flow of various economic and regulatory factors will undoubtedly shape its trajectory for the foreseeable future.

This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.