Crypto News Today: Bitcoin Returns to $45,000 on BTC-Spot ETF Hype

Key Insights:

• BTC returned to the $45,000 handle on Tuesday after rallying 4.39% on Monday.
• Anticipation over the SEC approving the first batch of BTC-spot ETFs drove buyer demand.
• US lawmaker chatter, BTC-spot ETF-related news, and regulatory activity will be the focal points.

Bitcoin Retakes the $45,000 Handle as Investors Await SEC Approvals

Bitcoin (BTC) rallied 4.39% on Monday. Following a 0.24% gain on Sunday, BTC ended the session at $44,271. Significantly, BTC extended its winning streak to three sessions. On Tuesday, BTC struck a morning high of $45,433. BTC previously held the $45,000 handle in April 2022.

Anticipation of the SEC approving the first batch of BTC-spot ETFs drove the buyer demand for BTC. The crypto community is bullish about the launch of a BTC-spot ETF market.

Amicus Curiae attorney and CryptoLaw US founder John E. Deaton shared his views, saying,

“Spot ETFs + Halving + rate cuts + election year manipulation QE (e.g. printing) + 75% of BTC not selling = higher price moving forward.”

Amid the anticipation, news of a single investor planning to invest $200 million into the Bitwise Bitcoin ETP Trust raised expectations of sizeable inflows into a BTC-spot ETF market. On December 29, Bitwise filed a third amended Form S-1 with the SEC. The filing revealed an unnamed party interested in purchasing up to $200 million in shares.

Bloomberg Intelligence ETF Analysts James Seyffart and Eric Balchunas shared their views about the likely impact of a BTC-spot ETF market on bitcoin. Balchunas said,

“Agree w James & Gabor. Using a fishing metaphor, the millions of hungry retail minnows (that attacked BITO on first days amid the btc fomo mania of 2021) are mostly gone but there are bigger fish (advisors, institutions) to be caught but they are pickier, will wait bf biting.)”

Seyffart had this to say,

“Consensus seems to be (anecdotally) that People are focused on a massive short term impact that I think could be a bit of a let down while at same time not fully appreciating the potential longer term impacts.”

The US DoJ and SBF Remained a Focal Point

In December 2023, the US DoJ dropped the charges against Sam Bankman-Fried relating to campaign finance and bribery of Chinese officials.

The crypto community continued to react to the news in the New Year. John E. Deaton shared a Fox Business article, saying,

“Make no mistake: disgrace is the appropriate word to describe the DOJ’s decision to drop the campaign finance charges. Everything about this decision is an utter disgrace, including the timing – on the eve of a holiday weekend. This decision was made at the highest level. Merrit Garland got a call to drop it. Full stop.”

Significantly, the general consensus is the US administration pressured the DoJ to drop the charges. On January 1, 2024, FOX Business posted an article about the DOJ and SBF, saying,

“SWEPT UNDER THE RUG: DOJ torched for dropping case that would have spotlighted SBF as Dems’ top donor.”

The crypto community linked the move with Senator Elizabeth Warren and her anti-crypto campaign. Evidence of SBF as a top donor to the Democratic Party could significantly impact the Democrat’s campaign.

Technical Analysis

Bitcoin Analysis

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

A BTC move through the morning high of $45,433 would give the bulls a run at the $46,000 handle.

On Tuesday, BTC-spot ETF-related news will be the focal point.

However, a break below the $44,690 handle would support a fall toward the $42,968 support level.

The 14-Daily RSI reading, 63.62, suggests a BTC return to the $46,000 handle before entering overbought territory.

Ethereum Analysis

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

An ETH return to $2,400 would support a move to the $2,457 resistance level.

However, a fall below the $2,300 handle would bring the $2,300 support level into play.

The 14-period Daily RSI at 60.44 indicates an ETH move to the $2,457 resistance level before entering overbought territory.