Overview
Bitcoin was approaching $38,000, a level last seen in May 2022, as part of an extended rise fueled by anticipation of new demand for the cryptocurrency from exchange-traded funds (ETF). While the Securities and Exchange Commission (SEC) deferred a decision on whether to approve the first US ETF investing directly in Bitcoin on Wednesday, others expect a batch of such funds to be approved by January. The ETFs would make it simpler for both institutional and retail investors to obtain exposure to Bitcoin. The notion that the Federal Reserve would not raise interest rates has also increased the value of cryptocurrency, which is susceptible to fluctuations in the amount of liquidity in financial markets.
Fundamental Updates
Let’s delve into the significant developments shaping the crypto market landscape:
- BlackRock files for spot Ethereum ETF: BlackRock has officially applied with the Securities and Exchange Commission for a spot Ethereum exchange-traded fund. The iShares Ethereum Trust ETF intends to represent the overall performance of the ether price, according to a Form S-1 filed with the SEC by iShares late Wednesday. The iShares brand is synonymous with BlackRock’s exchange-traded fund offerings. The Form S-1 was filed just one week after BlackRock registered the iShares Ethereum Trust firm with the Delaware Department of State Division of Corporations. Then, only hours after Nasdaq filed for the planned ETF, BlackRock said it is working on a spot ether ETF. In June of this year, BlackRock also filed for the iShares Bitcoin Trust, which shook markets. Several spot bitcoin ETF applications, including one from BlackRock, are now being reviewed by the SEC.
- The South Korean pension fund buys 280K Coinbase shares: In the third quarter of 2023, the National Pension Service (NPS), one of the world’s largest pension funds in South Korea, bought little over 280,000 shares in Coinbase, which has gained 39% in value. The SEC filing states that the NPS bought its Coinbase stock batch for $19.9 million, resulting in a $7 million profit, or 39%. Due to volatility, the NPS has avoided investing in cryptocurrencies like Bitcoin. Since starting 2023 at $37, Coinbase shares have appreciated 170%. Despite an SEC lawsuit, Coinbase grew rapidly in 2023. The June 2023 complaint claims Coinbase violated U.S. securities laws by marketing unregistered securities. Coinbase again questioned the SEC’s crypto jurisdiction in October, alleging that its security definition was too broad.
Key Data Points
- Total market capitalization: The total market capitalization of the crypto market is currently around $1.49 trillion. This is a net $60 Billion change from last week.
- Bitcoin dominance: Bitcoin dominance, which tracks the percentage of the total market capitalization that is held by Bitcoin, is currently at around 49.1%. This is 2.3% down from last week.
- ETH dominance: ETH dominance, which tracks the percentage of the total market capitalization that is held by Ethereum, is currently at around 16.7%. This is 2.45% up from last week.
Bitcoin Price Analysis:
The strong bounce off of the support level near $35,500 shows that buyers are still interested in lower prices. There is a level of resistance around $38,000 that the bulls will try to break through, but the bears may sell off hard. It will show that buyers are leaving the market quickly if the price goes down and breaks below the support level near $35,500. That could push the price down to the $34,500–$33,000 line. It is likely that bulls will buy strongly when prices are low. Once they push the price above $38,000, the bulls will be in charge again.
BTC Technical Indicator:
Macro Updates:
- The Labour Department’s Bureau of Labour Statistics (BLS) reported that US consumer prices were steady in October due to reduced petrol costs and decreasing underlying inflation after a 0.4% gain in September.
- After climbing 3.7% in September, US consumer inflation rose 3.2% through October. Economists predicted a 0.1% monthly increase and 3.3% annual increase in the CPI.
- The US dollar fell more than 1% versus major currencies on Tuesday, while US Treasury yields fell after October consumer price data showed inflation slowing.
Bitcoin returns were 1.5% for this week. The Alpha Blue Chip Focused Strategy returns were 6.85% during the same period (09 November – 15 November). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were -5.12% and 4.88%, respectively.
