Crypto News Today: MicroStrategy Buys More BTC Before Spot ETF Approvals

Key Insights:

• BTC eyes a return to $44,000 after a Wednesday rebound.
• MicroStrategy acquires more BTC before the BTC-spot ETF approval window.
• On Thursday, investor focus will be on amended S-1 filings and SEC comments.

Bitcoin Retargets $44,000 Before the SEC Deadline

Bitcoin (BTC) gained 2.11% on Wednesday. Partially reversing a 2.67% loss from Tuesday, BTC ended the session at $43,481.

Market bets on the SEC approving BTC-spot ETFs in early January drove buyer demand for BTC and the broader market. Over the holidays, the SEC set a December 29 deadline for amended S-1s. Significantly, the SEC warned issuers to remove references to In-kind creations.

Bloomberg Intelligence ETF Analyst Eric Balchunas shared his thoughts about the race to the December 29 deadline, saying,

“New one from me today on how just making it to the starting gate is half the battle for ETF issuers in the Cointucky Derby, it’s the race before the race, currently a mad scramble behind scenes to get signed AP agreements, a critical but not easy last step.”

Amidst all the discussion about In-kind and Cash creations, James Seyffart provided some clarity, saying,

“I don’t know who needs to hear this, but apparently there are a lot of you on this app. Cash creation does not mean the fund won’t hold spot BTC or that a Bitcoin ETF will be a fractional reserve product. Even in cash create/redeem — the funds *WILL* hold spot Bitcoin.”

However, Balchunas summed up the In-kind/Cash create debacle, saying,

“Let’s get real: most non-crypto ppl (and esp wealth managers who control $33T in assets) don’t give a flying you-know-what if bitcoin ETF is only redeemable in cash vs btc. In fact, they’d prefer USD back. They just want exposure (which it gives, she not wrong). Same as gold.”

MicroStrategy Acquires More BTC Before BTC-Spot ETF Launch

MicroStrategy (MSTR) acquired 14,620 BTC on Wednesday for approximately $615.7 million. MicroStrategy founder Michael Saylor announced the news on X, saying,

“MicroStrategy has acquired an additional 14,620 BTC for ~ $615.7 million at an average price of $42,110 per BTC. As of 12/26/23, MicroStrategy now holds 189,150 BTC acquired for ~ $5.9 million at an average price of $31,168 per bitcoin.”

Before the holidays, Saylor talked bullishly about BTC. Saylor discussed the likely effects of the BTC halving event and BTC demand from BTC-spot ETFs.

Notably, the latest purchase came before the December 29 SEC deadline and the January 5-10 approval window.

Technical Analysis

Bitcoin Analysis

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

A BTC return to the $44,000 handle would give the bulls a run at the $44,690 resistance level and the December 8 high of $44,747.

On Thursday, BTC-spot ETF-related news will influence buyer demand for BTC and the broader crypto market.

However, a break below the $42,968 support level would bring sub-$41,000 into play.

The 14-Daily RSI reading, 58.23, suggests a BTC break above the $44,690 resistance level before entering overbought territory.

Ethereum Analysis

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

An ETH break above the morning high of $2,446 would support a breakout from the $2,457 resistance level.

However, a drop below the $2,400 handle would bring the $2,300 support level into play.

The 14-period Daily RSI at 65.22 indicates an ETH break above the $2,457 resistance level before entering overbought territory.