- Bitcoin (BTC) recorded a 0.90% gain on Saturday, closing at $42,232, while Ethereum (ETH) saw a modest 0.03% increase.
- Noteworthy factors such as GBTC outflows, net inflows in BTC-spot ETF markets, and developments in the SEC’s legal case against crypto entities captured investor attention.
- On Sunday, discussions around crypto-spot ETFs, scrutiny from US lawmakers, and updates on the SEC’s legal battles with crypto entities should be taken into account.
Bitcoin-Spot ETF Market: Influence on BTC’s Return to $42,000
- BTC’s 0.90% gain on Saturday marked a continuation of the 4.68% rally on Friday, reaching $42,232 and holding above the $42,000 threshold for the first time in ten sessions.
- Investor interest remained high due to BTC-spot ETF-related volume and flow data, with a significant impact from the decline in Grayscale Bitcoin Trust (GBTC) outflows, leading to increased demand for BTC.
- BitMEX Research released data on BTC-spot ETF flows, indicating a shift from GBTC outflows of $640.5 million on day 7 to net inflows in the BTC-spot ETF market on day 11.
SEC vs Crypto: Anticipation of Pivotal Court Rulings
- The ongoing SEC v Ripple case continues to be a focal point, with Judge Torres ruling in July that XRP is not a security in programmatic sales but is a security in sales to institutional investors.
- The case is progressing through remedies-related discovery, and the SEC and Ripple will present arguments regarding punitive penalties for XRP sales to institutional investors.
- The SEC v Coinbase (COIN) case, heard on January 17, holds potential implications for the US digital asset space, with Coinbase challenging the SEC’s regulatory authority over crypto exchanges.
Coinbase CLO Grewal’s Insights on Revak v. SEC Realty Case
- Coinbase Chief Legal Officer Paul Grewal’s discussion of the Revak v. SEC Realty Case highlights its relevance to the ongoing legal battles. Grewal emphasizes key aspects that challenge an “ecosystem” access definition of an investment contract.
- The Ripple and Coinbase cases fall under the jurisdiction of the 2nd Circuit, as opposed to the LBRYcom case, governed by the 1st Circuit.
- BTC maintains bullish signals, staying above the 50-day and 200-day EMAs.
- A break above the $42,968 resistance level could lead to a move towards the $44,690 resistance level.
- Monitoring SEC v crypto case news and BTC-spot ETF-related discussions is advised.
- ETH exhibits bearish near-term signals below the 50-day EMA but remains bullish in the longer term above the 200-day EMA.
- Breaking through the $2,300 resistance level could trigger a move to the $2,457 resistance level.
- Investors should stay informed about ETH-spot ETF-related developments.
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