Crypto News: Sentiment Toward a BTC-Spot ETF Approval Sends BTC to $30,000

Key Insights:

• The Chamber of Digital Commerce filed an Amicus Curiae brief supporting Binance in the SEC v Binance case.
• On Friday, optimism toward the SEC approving BTC-spot ETF applications fueled buyer appetite for BTC and the broader market.
• Fear of increased US Administration scrutiny of the crypto market becomes a headwind.

Chamber of Digital Commerce Delivers Binance Support

On Thursday, the Chamber of Digital Commerce filed an Amicus Curiae brief supporting Binance in the SEC v Binance case.

The Chamber argued,

“Despite the SEC’s dogged efforts to collapse the distinction between an investment contract itself and the underlying subject of that contract, tokens generally available for trading on exchanges are not a “contract, transaction or scheme” that is the embodiment of a security. The SEC does not and cannot allege that the tokens traded here grant the holders a right to receive profits generated by the token creator or allocator, nor would any reasonable token holder believe that to be the case.”

The Chamber went on to say,

“In bringing a case against the Defendants here, the SEC is suing the equivalent of a grocery store selling oranges and other fruit, or an online e-commerce marketplace, like Amazon.”

The Amicus Curiae brief filing comes at a challenging for Binance. News hit the wires of Israeli authorities ordering Binance to freeze over 100 Hamas-linked crypto accounts. This development has heightened anti-crypto sentiment on Capitol Hill.

Senator Elizabeth Warren co-signed a bipartisan letter calling for the US Administration to address crypto-financed terrorism. The letter will return the spotlight to the digital asset space and the lack of a robust regulatory framework.

Coinbase Chief Legal Officer Paul Grewal shared his views on the scrutiny of the crypto industry, saying,

“It’s disappointing that some would capitalize on a tragedy to scapegoat crypto while ignoring significant terror finance elsewhere. But no currency – whether fiat, gold, or crypto – should ever be used to support terrorism.”

BTC-Spot ETF Optimism Delivered a Broad-Based Crypto Rally

On Friday, optimism toward the SEC approving BTC-spot ETFs drove demand for BTC and the broader market.

The SEC decision not to appeal the Grayscale win in appellate courts has fueled speculation of SEC approvals. Recent refilings by Fidelity and Grayscale have boosted market optimism despite increased scrutiny following the Hamas attack on Israel.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the $30,107 resistance level would support a move toward the $31,143 resistance level.

Market sentiment toward the SEC and the approval of the BTC-spot ETF applications remains the key driver. However, scrutiny from the US Administration, in response to the bipartisan letter, may test the buyer appetite for cryptos.

A drop below the $29,193 support level would bring sub-$29,000 levels into play.

The 14-Daily RSI reading of 69.79 shows BTC on the border of overbought territory. A BTC return to $30,000 will likely reflect BTC in overbought territory.

Ethereum Analysis

ETH remained below the 50-day and 200-day EMAs, affirming bearish price signals. On Friday, the 50-day EMA and the $1,626 resistance level rejected an ETH breakout to $1,700.

If ETH falls below $1,600, it could potentially test the $1,502 support level. Market angst over a possible US Administration response to the bipartisan letter would test buyer appetite.

However, hopes of progress toward a crypto-spot ETF market will likely continue to support buyer demand.

An ETH break above the 50-day EMA and the $1,626 resistance level would bring the 200-day EMA into play. However, selling pressure will likely intensify at $1,626. The 50-day EMA is confluent with the $1,626 resistance level.

The 14-Daily RSI reading of 50.40 indicates an ETH break above the 50-day EMA and $1,626 resistance level before entering overbought territory.