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The Securities and Exchange Commission (SEC) hits cryptocurrencies again. Bitcoin (BTC) recovers some rhythm and manages to rise 0.56% in the last 24 hours to $30,600. Ethereum (ETH), meanwhile, rallies over 1.5% to $1,950.

The market, especially the reigning cryptocurrency, has recovered some ground after 'The Wall Street Journal' reported that the US regulator rejected applications from BlackRock, Invesco, Fidelity and other companies to create a spot Bitcoin exchange-traded fund (ETF). According to these sources, the SEC informed the Nasdaq and the Chicago Board Options Exchange (CBOE) that the filings for these ETFs were "unclear and incomplete."

Following this news, BTC fell from an intraday high of over $31,200 to threatening $29,600, although it has managed to climb back up over the weekend and early Monday. Similarly, in response to the SEC's denial, Fidelity and CBOE named Coinbase as a partner in a shared surveillance agreement in a second filing with the regulator. In this document, CBOE asserted that Coinbase "represents a substantial portion of US dollar-denominated, US-based Bitcoin trading."

Be that as it may, the fact that these major institutional players have an interest in moving these proposals forward has given a "very positive boost" to Bitcoin, even with the SEC's lawsuits over Binance and Coinbase looming large over the market weighing on the industry. This is Craig Erlam, senior market analyst at OANDAs view, as he noted that, following these developments, Bitcoin continues to remain in the $30,000 to $31,000 range in which it has been trading in recent weeks.

For his part, Edward Moya, another analyst at OANDA, stressed that the good performance of cryptocurrencies in the first half of the year, with Bitcoin rebounding above 80%, is due to the fact that optimism has grown that "crypto wont be regulated out of existence." "The focus has been on a Bitcoin ETF approval in the US, but it is unclear how long it will take to get that update, with end of summer being most likely," he added.

"A break above $31,000 could see it accelerate higher once more with $32,500 potentially offering the next test," stated Erlam. Similarly, Moya stressed that the reigning cryptocurrency will need a "new catalyst" if it is to break out of the range in which it has been moving in recent weeks. If it succeeds, he explained, it could climb to $34,000.

Meanwhile, Joe DiPasquale, CEO of BitBull Capital, believes that the reigning cryptocurrency may be testing the support zone between $27,000 and $29,000. If so, we could see further declines in the altcoins space, as they are eagerly rising today, on Monday. "Some of that sentiment shifted toward alts, as ETH showed signs of wanting to test $2K, and other altcoins also rallied. Market participants will do well to remain cautious of sustained upside momentum," the expert added.

In this regard, the Fear and Greed Index indicates that digital assets could be in corrective territory after recovering the 60 points lost following the SEC's rejection of bitcoin spot ETFs. According to this index, the prevailing market sentiment is one of "greed" as investors feel more optimistic about the future of cryptocurrency markets. The yearly high of this benchmark was reached in mid-April, when it stood at 69 points.

A downward reading of this benchmark can indicate "extreme fear" which can be interpreted as a sign that investors are overly concerned and is usually understood as a buying opportunity. Conversely, a broad "greedy" sentiment may indicate that the market is about to undergo a correction.

In other market news, almost all altcoins have risen over 1%. The moderate declines in Ripple (XRP), which has fallen 0.3%, are also noteworthy.

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Bitcoin recovers $30,000 after the SECs rejection of ETFs - ShareCast