In recent developments within the cryptocurrency market, Bitcoin (BTC) experienced a slight decline of 0.40% on Sunday, partially offsetting the 0.90% gain from Saturday. Despite this, BTC concluded the week with a 1.09% increase, reaching $42,061. Notably, this marked the end of a two-week losing streak for the leading cryptocurrency.
Contributing to BTC’s recovery from levels below $40,000 was a decrease in outflows from the Grayscale Bitcoin Trust (GBTC). Concurrently, the BTC-spot ETF market saw net inflows of $14 million on Friday, breaking a four-day losing streak. BitMEX Research provided insights into the flow data of the BTC-spot ETF market.
Analysts, including James Seyffart from Bloomberg Intelligence, emphasized the significance of monitoring BTC-spot ETF flows for potential impacts on BTC trends, particularly in the lead-up to the Bitcoin halving event. However, they also highlighted the need for investors to consider the influence of ongoing legal cases, such as SEC v crypto, on overall market sentiment.
Coinbase, a prominent cryptocurrency exchange, underwent adjustments in analyst assessments. Oppenheimer Investment Bank upgraded Coinbase (COIN) from “perform” to “outperform,” citing higher trading volumes, BTC-spot ETF approvals, and favorable chances in the SEC vs. Coinbase case. In contrast, JPMorgan Chase downgraded Coinbase from “neutral” to “underweight.”
The SEC vs. Coinbase case revolves around the regulatory authority of the SEC over crypto exchanges. Investors eagerly await the ruling on Coinbase’s Motion to Dismiss (MTD), filed in August, asserting that the SEC lacks statutory authority in regulating crypto exchanges. Analysts, including Elliot Stein from Bloomberg Intelligence, suggest Coinbase has a 70% chance of victory in the MTD. If granted, this could have implications for other SEC cases against crypto exchanges, potentially even reaching the Supreme Court.
Ripple CEO Brad Garlinghouse weighed in on the legal landscape, expressing skepticism about the current Supreme Court’s friendliness towards regulators. The outcome of such legal proceedings could also influence the trajectory of the crypto-spot ETF market, offering clarity on the classifications of altcoins and potentially paving the way for the approval of Ethereum (ETH) and XRP-spot ETFs, among others.
Technical analysis reveals that BTC is currently positioned above the 50-day and 200-day exponential moving averages (EMAs), signaling a bullish stance. A breakout above the $42,968 resistance level could propel BTC towards the $44,690 resistance level. On the other hand, a fall through the 50-day EMA might bring the $39,861 support level into play.
ETH, meanwhile, remains below the 50-day EMA but above the 200-day EMA, presenting mixed short-term and long-term signals. An upward move above the $2,300 resistance level and the 50-day EMA could push ETH towards the $2,457 resistance level. Conversely, a drop below the $2,200 handle may trigger support at the $2,143 level. The 14-period Daily RSI suggests a potential drop to the $2,143 support level before entering oversold territory. Investors are advised to keep an eye on ETH-spot ETF-related updates for further insights.
As the crypto market continues to evolve, these factors, including ETF flows, legal developments, and technical analysis, will likely play crucial roles in shaping the trajectory of digital assets in the coming days.
