Bitcoin (BTC) Climbs as Kamala Harris Backs Crypto Innovation Amid SEC Scrutiny

Bitcoin Extends Winning Streak to Six Sessions on Demand Trends

On Sunday, September 22, BTC gained 0.32%, following a 0.25% rise from the previous session, closing at $63,586. Significantly, BTC revisited the $64,000 handle for the second time since August 26. Meanwhile, the broader crypto market declined by 0.30%, dragging the total market cap to $2.166 trillion.

US Politics: Kamala Harris Talks Crypto

US Vice President and Presidential candidate Kamala Harris put digital assets in focus during a New York fundraiser on Sunday. Vice President Harris voiced her support for digital assets, reportedly stating,

“We will partner together to invest in America’s competitiveness, to invest in America’s future. We will encourage innovative technologies like AI and digital assets while protecting our consumers and investors.”

Bipartisan support for US digital assets could end Capitol Hill’s anti-crypto stance and possibly the SEC’s era of regulation through enforcement.

Notably, Harris’s support for digital assets comes at a pivotal time, with crypto firms engaged in legal battles with the SEC. Additionally, the SEC may still appeal rulings in the SEC vs. Ripple case.

Could Kamala Harris pressure the SEC to soften its stance against cryptos?

An SEC appeal against rulings in the Ripple case could overshadow Kamala Harris’s attempts to woo the crypto vote. An appeal, or decision not to appeal, could signal the Democratic Party’s stance on crypto regulation before the US Presidential Election.

The SEC will be under the spotlight on Tuesday, September 24. All five SEC Commissioners will testify at a US House Committee on Financial Services committee hearing. The hearing will draw more interest than usual, with SEC Chair Gensler’s stance on cryptos likely to face intense scrutiny after Kamala Harris’s comments.

Demand Continues to Drive BTC toward $70,000

BTC demand increased last week, easing oversupply concerns. The US BTC-spot ETF market saw net inflows of $397.2 million in the week ending September 20. Furthermore, MicroStrategy (MSTR) added to demand, purchasing 7,420 BTC for approximately $458.2 million.

Rising BTC demand through the US BTC-spot ETF market and MicroStrategy coincided with news of the SEC approving options trading on iShares Bitcoin Trust (IBIT).

Michael Saylor commented on the SEC approval, stating,

“The approval of options for IBIT will accelerate institutional Bitcoin adoption.”

BTC, US Economic Indicators, and the Fed Rate Path

Last week, the combined effect of a 50-basis point Fed interest rate cut and expectations of a soft US economic landing pushed BTC to a Friday, September 20, high of $64,088.

On Monday, September 23, US economic indicators may further influence bets on a soft landing and the Fed rate path. The US S&P Global Services PMI will require investor consideration.

Economists predict a modest drop in the Services PMI from 55.7 in August to 55.2 in September. A modest decline could raise bets on a soft landing and boost BTC demand. Conversely, a PMI fall toward 50 could retrigger fears of a hard US economic landing, possibly pushing BTC below $60,000.

Investors should remain alert, with upcoming US economic indicators likely to affect buyer demand for BTC and the broader market. Stay updated with our latest news and analysis to manage your BTC and crypto exposures.

Technical Analysis

Bitcoin Analysis

BTC remains well above the 50-day and 200-day EMAs, sending bullish price signals.

A breakout from the $64,000 resistance level could give the bulls a run at $67,500. A break above $67,500 may bring the $69,000 resistance level into play.

Investors should consider US economic indicators, US BTC-spot ETF market flows, and SEC activity.

Conversely, a drop below $62,500 could give the bears a run at the 50-day EMA and the $60,365 support level. Buying pressure could intensify at the $60,365 support level. The 50-day EMA is confluent with the support level.

With a 64.01 14-day RSI reading, BTC could climb to $65,000 before entering overbought territory.

Ethereum Analysis

ETH holds above the 50-day EMA while hovering below the 200-day EMA, affirming bullish near-term but bearish longer-term price signals.

An ETH breakout from the $2,664 resistance level could give the bulls a run at the 200-day EMA. Furthermore, a break above the 200-day EMA may signal a move toward the $3,033 resistance level.

US ETH-spot ETF market-related updates also require consideration.

Conversely, an ETH break below the 50-day EMA could give the bears a run at the $2,403 support level.

The 14-period Daily RSI reading, 59.44, indicates an ETH climb to $2,800 before entering overbought territory.