Crypto News Today: Coinbase Upgrades, Downgrades, and the Motion to Dismiss

Key Insights:

• BTC declined by 0.40% on Sunday, ending the session at $42,061, with ETH falling by 0.46%.
• Investor caution ahead of Day 12 of BTC-spot ETF trading left BTC in negative territory.
• On Monday, investors must track the news wires for updates on BTC-spot ETFs, SEC v crypto cases, and US lawmaker scrutiny.

BTC-Spot ETF Market Sees Net Inflows, Ending a Two-Week Losing Streak

BTC declined by 0.40% on Sunday. Partially reversing a 0.90% gain from Saturday, BTC ended the week up 1.09% to $42,061. Significantly, BTC ended a two-week losing streak.

A downward trend in GBTC outflows contributed to a BTC recovery from sub-$40,000. However, net inflows for the BTC-spot ETF market drove buyer demand for BTC on Friday, delivering gains for the week.

GBTC outflows declined from a week high of $640.50 million (Trading Day 7) to a Friday low of $255.1 million (Trading Day 11). Significantly, the BTC-spot ETF market registered net inflows of $14 million on Friday, ending a four-day losing streak.

BitMEX Research released the BTC-spot ETF market flow data.

Last week, Bloomberg Intelligence ETF analyst James Seyffart warned the BTC-spot ETF market is not the BTC market. However, BTC trends will likely remain hinged on BTC-spot ETF flows.

An upward trend in net inflows before the Bitcoin halving event could be a bullish BTC price signal. Nonetheless, investors must consider the influences of SEC v crypto cases on investor sentiment.

Oppenheimer Investment Bank Upgraded Coinbase to Outperform

Recently, Oppenheimer Investment Bank upgraded Coinbase (COIN) from perform to outperform. The upgrade followed a JPMorgan Chase (JPM) downgrade from neutral to underweight.

Amicus Curiae attorney John E Deaton shared the Oppenheimer news, saying,

“It’s simple. If Crypto’s here to stay, Coinbase is a no brainer long-term play.”

Oppenheimer gave a target price of $160 versus the JPM target price of $80. Oppenheimer attributed the upgrade to higher trading volumes, the BTC-spot ETF approvals, and the chances of winning the SEC vs. Coinbase case.

SEC v Coinbase: The Motion to Dismiss Ruling

Investors await a court ruling on the Coinbase Motion to Dismiss (MTD). Coinbase filed a Motion to Dismiss in August, arguing the SEC lacks the statutory authority to regulate crypto exchanges.

On January 17, Judge Katherine Failla heard oral arguments from the SEC and Coinbase on the matter of the MTD. Bloomberg Intelligence Legal Analyst Elliot Stein attended the court session and gave Coinbase a 70% chance of victory.

If Judge Failla grants the MTD, the SEC cases may need to reconsider its cases against Binance and Kraken. Stein believes the SEC v Coinbase case could reach the Supreme Court if it survives the Motion to Dismiss.

Ripple CEO Brad Garlinghouse recently discussed Supreme Court rulings vis-a-vis the ongoing SEC vs. Ripple case. Garlinghouse had this to say,

“The current Supreme Court, we’d love to see the Vegas odds on how that would go. They have not been friendly to regulators.”

Court rulings could also influence the evolution of the crypto-spot ETF market. Clarifications on the classifications of altcoins could pave the way for the SEC to approve ETH and XRP-spot ETFs, among others.

Technical Analysis

Bitcoin Analysis

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

A BTC breakout from the $42,968 resistance level would give the bulls a run at the $44,690 resistance level.

On Monday, BTC-spot ETF-related updates and SEC v crypto case-related news need consideration.

However, a fall through the 50-day EMA would bring the $39,861 support level into play.

The 14-Daily RSI reading, 50.79, suggests a BTC return to the $44,690 resistance level before entering overbought territory.

Ethereum Analysis

ETH remained below the 50-day EMA while sitting above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

An ETH break above the $2,300 resistance level and the 50-day EMA would support a move to the $2,457 resistance level. Selling pressure may intensify at the $2,300 resistance level. The 50-day EMA is confluent with the $2,300 resistance level.

Investors should continue tracking ETH-spot ETF-related updates.

However, a fall through the $2,200 handle would bring the $2,143 support level into play.

The 14-period Daily RSI at 43.71 indicates an ETH drop to the $2,143 support level before entering oversold territory.