Crypto News Today: BTC Tumbled to Sub-$42,000 on Grayscale GBTC Outflows

Key Insights:

• BTC tumbled 7.57% on Friday, ending the session at $42,907.
• Grayscale GBTC outflows impacted the buyer demand for BTC and altcoins.
• On Saturday, investors will focus on BTC-spot ETF-related chatter, US lawmaker commentary, and SEC activity.

Bitcoin-Spot ETF: Outflows Send BTC to Sub-$42,000

BTC slid by 7.57% on Friday. Following a 0.63% loss on Thursday, BTC ended the day at $42,907. BTC fell to a session low of 41,659 before steadying.

Grayscale GBTC outflows sent BTC and the broader crypto market into negative territory. On Friday, the total crypto market cap fell by $100.06 billion (5.78%) to $1,630 billion.

Bloomberg Intelligence ETF analyst James Seyffart shared inflow and outflow numbers on Friday, saying,

“UPDATE: Looks like Grayscale’s GBTC saw $484 million in outflows today. ARKInvest/21Shares’ ARKB saw $42.5 million of inflows. BitwiseInvest’s BITB flat on flows today. Don’t have the data on any of the others yet. Total out of GBTC is now $579 million.”

Seyffart also shared trading volume numbers. Excluding GBTC trading volumes, iShares and Fidelity were well ahead of the rest of the pack.

While BTC and the broader crypto market saw red, SEC Chair Gary Gensler continued to face scrutiny after the account hack.

US Lawmakers Call for SEC Briefing on Unauthorized BTC ETF Post

On Thursday, the US House Committee on Financial Services shared a letter to SEC Chair Gary Gensler, saying,

“Chairman Patrick McHenry, Huizenga, French Hill, and Ann Wagner are demanding a briefing from the SEC on its compromised X account and the unauthorized Bitcoin ETF post transmitted on January 9.”

The Letter stated,

“Last year, the SEC adopted a cybersecurity risk management rule requiring companies to disclose within four business days if a material cybersecurity incident occurs. The disclosure must include a description of the nature, scope, and timing of the incident. Given yesterday’s tweet, we expect the SEC to hold itself to the same requirements that are imposed on companies throughout the country.”

The Committee also advised the SEC it has jurisdiction to oversee the activities of the SEC and requires a briefing by January 17, 2024.

January 17 could be a pivotal day for the US crypto market. The SEC and Coinbase will deliver oral arguments on the Coinbase (COIN) motion to dismiss (MTD).

In August 2023, Coinbase filed a motion to dismiss the SEC v Coinbase case. Coinbase argued the SEC lacks the statutory authority to regulate crypto exchanges. The outcome of the SEC v Coinbase case could prove significant for the evolution of the crypto-spot ETF market.

On Wednesday, SEC Chair Gary Gensler issued a statement after the approval of BTC-spot ETFs, saying,

“Importantly, today’s Commission action is cabined to ETPs holding one non-security commodity, bitcoin. It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”

A Coinbase victory could address the classification of cryptos and pave the way for a crypto-spot ETF market.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the $42,968 resistance level would support a move to the $44,690 resistance level.

On Saturday, US lawmaker chatter, BTC-spot ETF-related data, and SEC activity remain the focal points.

However, a fall through the 50-day EMA would give the bears a run at the $39,861 support level.

The 14-Daily RSI reading, 45.41, suggests a BTC fall to the $39,861 support level before entering oversold territory.

Ethereum Analysis

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

An ETH return to the $2,600 handle would support a break above the $2,650 resistance level to target the Friday high of $2,717.

Investors should monitor updates related to ETH-spot ETFs.

However, a break below the $2,500 handle would bring the $2,457 support level into play.

The 14-period Daily RSI at 63.27 indicates an ETH break above the $2,650 resistance level before entering overbought territory.