Bitcoin (BTC) Ends Winning Streak as BlackRock’s New Withdrawal Policy Surfaces

Bitcoin Ends Six-Day Winning Streak

On Monday, September 23, BTC declined by 0.37%, reversing a 0.32% gain from the previous session, closing at $63,349. Significantly, BTC ended its six-day winning streak, bucking the broader crypto market trend. The broader crypto market advanced by 0.51%, bringing the total market cap to $2.177 trillion.

BlackRock Introduces 12-Hour Withdrawal Policy

Last week, BlackRock (BLK) filed an amendment request with the SEC, requiring Coinbase (COIN) to process BTC withdrawals within 12 hours. According to the filing,

“Coinbase Custody shall process a withdrawal of Digital Assets from the Custodial Account to a public blockchain address within 12 hours of obtaining instruction from Client or Client’s Authorized Representatives.”

The amendment follows rumors of Coinbase acquiring paper BTC or BTC IOUs. However, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas dispelled the speculation that BTC’s price trends are because of the US BTC-spot ETF market, stating,

“Blackrock runs their own blockchain node and every night they pull the BTC balances from their wallet addresses on Coinbase Prime validating the BTC held by IBIT. They will show this to institutional clients upon request. […] Just know that this is not amateur hour, BlackRock has like 500 ETFs, which store the holdings w custodians and has been doing this for decades w out a hitch. This is why them and other ETF issuers are trusted by America’s advisors so much, they know their clients won’t get SBF-ed.”

Responding to one post on X, Balchunas added,

“Is 30 years of a pristine record not enough? ETFs are squeaky clean. SBF-free zone.

Nevertheless, BTC ended the Monday session in negative territory amid ongoing chatter about Coinbase and paper BTC. Notably, the iShares Bitcoin ETF has seen net inflows of only $6.7 million in September, while ARK 21Shares Bitcoin ETF (ARKB) has reported net inflows of $144.2 million.

US BTC-Spot ETF Market Flows Impact BTC Demand

The US BTC-spot ETF market had a slow start to the week. According to Farside Investors:

• On Monday, September 23, Grayscale Bitcoin Trust (GBTC) saw net outflows of $40.3 million, exceeding last week’s total net outflows of $28.9 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $24.9 million, while Grayscale Bitcoin Mini Trust (BTC) had inflows of $8.4 million.
• Excluding iShares Bitcoin Trust, the US BTC-spot ETF market registered total net outflows of $7.0 million on Monday, September 23.

Despite upbeat US economic data, the US BTC-spot ETF market saw inflows tumble across the issuers, with eight of the ten issuers (excluding IBIT) seeing zero net flows.

The all-important US S&P Global Services PMI slipped from 55.7 in August to 55.4 in September, signaling a resilient services sector. Significantly, the services sector accounts for almost 80% of the US economy. Concerns about Coinbase, paper BTC, and Monday’s BTC spot ETF flows overshadowed the upbeat data.

Cryptos and US Lawmakers Under the Spotlight

The SEC faces intense scrutiny on Tuesday, September 24. All five SEC Commissioners will testify at a US House Committee on Financial Services committee hearing.

US Vice President and Democratic Party front-runner for the US Presidential Election recently voiced her support for digital assets. Lawmakers may take the opportunity to assess whether the SEC and Chair Gensler have a change in stance on digital assets.

A less aggressive stance toward cryptos could signal a potential change in the SEC’s approach to regulating digital assets, supporting BTC demand.

BTC, US Economic Indicators, and the Fed Rate Path

Investors should also consider the US economic calendar on Tuesday. US consumer confidence figures may influence US BTC-spot ETF demand.

Economists forecast the CB Consumer Confidence Index to rise from 103.3 in August to 103.8 in September. A pickup in consumer confidence could signal rising consumer spending, supporting the US economy as it contributes over 60% to GDP.

Investors should remain alert, with upcoming US economic indicators and the hearing on Capitol Hill are 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 hovers comfortably above the 50-day and 200-day EMAs, affirming bullish price signals.

A break above the $64,000 resistance level would support a move toward $67,500. A return to $67,500 could give the bulls a run at the $69,000 resistance level.

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

Conversely, a fall through $62,500 could signal a drop toward the 50-day EMA and the $60,365 support level. Buying pressure may increase at the $60,365 support level. The 50-day EMA is confluent with the support level.

With a 60.18 14-day RSI reading, BTC may return to $65,000 before entering overbought territory.

Ethereum Analysis

ETH remains above the 50-day EMA while hovering below the 200-day EMA, confirming bullish near-term but bearish longer-term price trends.

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

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

Conversely, an ETH drop below the 50-day EMA could bring the $2,403 support level into play.

The 14-period Daily RSI reading, 59.99, suggests an ETH return to $2,800 before entering overbought territory.