Bitcoin faced a significant drop in its price following reports that the Securities and Exchange Commission (SEC) had deemed the spot Bitcoin exchange-traded fund (ETF) filings from BlackRock and other companies as inadequate. The cryptocurrency's value declined by 1.5% over the past 24 hours, reaching $30,250. The decline occurred after The Wall Street Journal, citing anonymous sources, revealed that the SEC expressed concerns about the recent surge in applications for ETFs holding spot Bitcoin, signaling that they were lacking in quality. While previous approvals had been granted for funds holding Bitcoin futures on regulated U.S. exchanges, the introduction of a spot Bitcoin ETF has been eagerly awaited by the industry. The news of applications from prominent financial institutions like BlackRock and Fidelity Investments, which included a unique market-surveillance mechanism to address regulatory concerns, had fueled double-digit increases in Bitcoin prices in recent weeks. A spot Bitcoin ETF from BlackRock or Fidelity would not only drive increased retail participation in the cryptocurrency market but also represent a significant entry into the digital asset space by major finance players. However, the revelation in The Journal that the SEC considers the applications "sufficiently clear and comprehensive" is likely to dampen some of the optimism surrounding cryptocurrencies. Earlier on the same day, Bitcoin had experienced an upward trajectory, reaching close to its recent peak near $31,500, the highest level since June 2022. This surge coincided with the release of key inflation data, which prompted positive movement in the Dow Jones Industrial Average and the S&P 500. The core personal-consumption expenditures (PCE) index, the Federal Reserve's preferred measure of inflation, indicated a downward trend in inflation, easing concerns about aggressive interest rate hikes by the central bank. In addition to Bitcoin, Ether, the second-largest cryptocurrency, remained stable at $1,850. Smaller altcoins retraced their earlier gains, with Cardano registering a 2% increase and Polygon rising by 1%. Memecoins like Dogecoin and Shiba Inu showed minimal fluctuations, hovering just above the flat line. The future of Bitcoin's price trajectory will depend on regulatory developments surrounding spot Bitcoin ETF applications and broader market dynamics. Investors and crypto enthusiasts continue to monitor these factors closely as the cryptocurrency landscape evolves.