The complete overview of the day's events on the (crypto) markets. Compactly summarized in the market commentary of the CVJ.CH editorial team.
Market Commentary
After a two-month long consolidation in the resistance zone around USD 30'000, an 18% correction led the bitcoin (BTC) price to the temporary low before the BlackRock ETF filing. As explained in the previous market commentary, the sell-off was primarily driven by liquidations of leveraged derivatives positions. In the ten days since the correction, the bitcoin price has traded in a narrow range of around 5%.
Generally, consolidations after significant moves are to be classified as signs of a continuation of the recent trend. A loss of the support zone in the current price region would confirm the bearish trend reversal classified as the end of the series of higher highs and lower lows. A general apathy can be observed in the bitcoin markets, which is reflected in comparatively low volumes. Combined with the lack of liquidity since the Alameda debacle, the next catalyst - whether positive or negative - may cause another aggressive price move.
Grayscale-Gerichtsprozess motiviert Bullen
Currently, the bulls are diligently defending the bitcoin price. After all, a decision is imminent in the pivotal court case between crypto conglomerate Grayscale and the U.S. Securities and Exchange Commission (SEC). For several years, the agency has blocked Grayscale's conversion of its flagship Grayscale Bitcoin Trust (GBTC) product into an exchange-traded fund (ETF). The SEC believes the proposal does not meet U.S. anti-fraud and investor protection standards.
Grayscale on the other hand vehemently denies these allegations and took the matter to court last July. They argue that the SEC still approved a futures-based ETF in October 2021, despite the same concerns. The SEC thus failed to treat similar investment vehicles in a consistent manner, according to the crypto firm. A panel of U.S. judges also questioned the agency's stance six months ago. The court case is so critical because it would pave the way for the first spot-based bitcoin ETF in the United States. Bloomberg analysts expect a positive outcome for Grayscale and the BlackRock fund to be approved soon.
This seems to be another angle where SEC/Gensler is kinda getting cornered.
Grayscale lawsuit.
Ethereum futures.
Blackrock intro of Coinbase SSA.
Now this unique filing.Good additional color from Nate here too! https://t.co/Db3Oa66NoQ
— James Seyffart (@JSeyff) August 25, 2023
Disclaimer
All information in this publication is provided for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute and is not intended as an offer, recommendation or solicitation to invest in any financial instrument, including cryptocurrencies and the like. The contents contained in the publication represent the personal opinions of the respective authors and are not suitable or intended as a basis for decision-making.
Risk notice
Investing in cryptocurrencies, is fundamentally associated with risk. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and can therefore be exposed to extreme price fluctuations in a short period of time.
