Crypto News: SEC Commissioner Hester Peirce Fuels BTC-Spot ETF Optimism

Key Insights:

• On Wednesday, BTC and the broader crypto market recovered from the Binance-fueled sell-off.
• SEC Commissioner Hester Peirce gave BTC and the crypto market a boost.
• Coinbase shares rallied, with investors considering Coinbase a beneficiary of the Binance fallout.

Binance: Market Panic Turned to Market Relief

On Tuesday, the total crypto market cap tumbled by $65.01 billion to $1,321 billion. It was the largest single-day drawdown since August 17, 2023, when the market cap fell by $68.93 billion.

The Tuesday loss was modest by historical standards. In November 2022, the crypto market lost $220 billion over two sessions on news of FTX filing for bankruptcy.

Binance met its withdrawal demands, easing fears of a possible collapse.

However, binance coin (BNB) failed to recoup its Tuesday losses. BNB gained 4.65% on Wednesday, partially reversing the 10.86% slump.

Coinbase Outperforms the Nasdaq on the Dawn of a New Binance

On Wednesday, the Nasdaq gained 0.46%, while Coinbase (COIN) shares rallied 3.56% to end the session at $109.25. The crypto market rebound and Binance woes contributed to the session gains.

On Tuesday, amicus curiae attorney John E. Deaton speculated Coinbase would be a big winner from the Binance news.

However, Coinbase is also in the Court with the SEC. January 17, 2024, is the next significant date in the SEC v Coinbase case. Judge Katherine Failla will hear oral arguments on the Coinbase motion to dismiss (MTD).

Coinbase filed an MTD in August, arguing the SEC lacked the statutory power to regulate crypto exchanges. The SEC filed charges against Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additional charges included the unregistered offering and selling of securities relating to its staking-as-a-service program.

In 2021, Coinbase went public on SEC approval and has maintained the same business.

BTC-Spot ETF News Fueled Optimism for a Crypto-Spot ETF Market

On Wednesday, Bloomberg Intelligence ETF Analyst James Seyffart shared the latest news. Grayscale filed a new S-3/prospectus. Grayscale has a hybrid creation/redemption mechanism, primarily in-kind, with a limited cash process.

Previously, the SEC called on applicants to change their creation/redemption structures to cash creates. Applications with in-kind structures could face further delays. Seyffart noted that Blackrock (BLK) recently met with the SEC and also favors in-kind over cash creates.

With plenty of BTC-spot ETF-related activity to consider, SEC Commissioner Hester Peirce gave BTC a boost, saying,

“There’s no reason for us to stand in the way of a Spot bitcoin ETF.”

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC move through the $37,600 resistance level would bring the November 9 high of $38,029 into play.

SEC activity and crypto-spot ETF updates will be focal points.

A drop below the $37,000 handle would give the bears a run at the $36,400 support level.

The 14-Daily RSI reading of 60.10 suggests a BTC move to the $37,600 resistance level before entering overbought territory.

Ethereum Analysis

ETH held above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH move to $2,100 would bring the $2,143 resistance level into play.

However, a break below the $2,021 support level would bring sub-$2,000 and the $1,926 support level into play.

The 14-period Daily RSI at 61.07 indicates an ETH move to the $2,143 resistance level before entering overbought territory.