The price of bitcoin is spiking on the back of the SEC reviewing a recent Bitcoin ETF application.
Bitcoin is currently changing hands over $6,700 per coin.
The highest level seen since early September:
(Source: https://www.coindesk.com/6700-bitcoin-price-charts-bullish-reversal-as-altcoins-surge/)
Though prices have pulled back ever so slightly off the highs at the time of writing.
What is causing the spike?
Like many times in crypto, it isn't entirely sure, though there is a very good guess as to what is causing the price rise...
The SEC made a surprise announcement yesterday afternoon that they are currently reviewing the 1400+ comments they have received on the VanEck/CBOE bitcoin ETF application.
Not only that, but they are open to receiving a few more comments from interested parties!
The news can be seen here:
https://www.ccn.com/sec-begins-reviewing-physically-backed-bitcoin-etf-will-examine-1400-comments/
You may recall that the original application was recently extended to September 30th for comment from the SEC.
Most people, myself included, assumed they would extend their decision at least one more time. Pushing the final decision out to March-April of 2019.
However, their surprise announcement yesterday may mean that they are going to make a ruling one way or the other sooner than originally anticipated.
(Source: http://intocryptonews.com/22577-the-sec-welcomes-your-comments-on-the-pending-bitcoin-etf.html)
However, that by itself shouldn't really be bullish.
The odds of the SEC approving the application are still slim at best.
Ok, 
, if the odds of approval are so poor why is bitcoin rallying?
My guess is that it has to do mainly with short covering.
Short positions were at an all time high going into this announcement.
They were betting that the SEC would either kick the can down the road or deny the application outright, with heavy emphasis on that first one.
Now that it is looking like the SEC may not kick the can, at least not fully, many shorts are likely covering in order to stay out of the way just in case it does get approved.
If it does not, they will put their short positions right back on and drive prices down once it is officially announced.
One could also conclude that the fact the SEC is wanting more answers to current questions and taking more comments could indicate that they are open to approving a bitcoin ETF after all, which likely increases the odds of one getting approved at some point.
Stay informed my friends.
Image Source:
https://www.ccn.com/sec-begins-reviewing-physically-backed-bitcoin-etf-will-examine-1400-comments/