Bitcoin is attempting to hold above the overhead resistance of $38,000 for the second consecutive day in order to begin the next leg of the uptrend. The interest among market observers may have intensified after the United States Securities and Exchange Commission (SEC) delayed its decision on the applications of Franklin Templeton and Hashdex exchange-traded funds. The SEC may have taken this step to ensure that every applicant gets considered for approval before the deadline of January 10, 2024.
Let’s delve into the significant developments shaping the crypto market landscape:
- Pando Asset, a Swiss asset manager, has filed for a Bitcoin Spot ETF: Pando Asset, a Swiss asset manager, has entered the race to set up the initial spot Bitcoin exchange-traded fund (ETF) by filing an S-1 form with the Securities and Exchange Commission (SEC). This move adds to the growing list of applicants fighting for approval of a Bitcoin ETF seat. It heightens industry expectation for the SEC’s upcoming ruling. The Pando Asset Spot Bitcoin Trust is intended to be listed on the Cboe BZX Exchange, subject to regulatory approval. Coinbase will serve as the company’s custodian. The filing indicates that the ETF’s bitcoin price will be determined by CME’s CF Bitcoin Reference Rate. Pando Asset already offers exchange-traded instruments that track the prices of the most popular cryptocurrencies. This is for European traders on the SIX Swiss Exchange, as specified on its website.
- Court Approves FTX’s $700+M Grayscale, Bitwise Trust Asset Sale: According to a previous court filing, FTX held shares from five Grayscale Trusts and one Bitwise trust. The cryptocurrency company Galaxy has obtained judicial approval to broaden its authority in facilitating the liquidation of assets. According to a document filed in a Delaware bankruptcy court on Friday, the FTX estate has been authorised to sell its trust assets, which include shares of Grayscale and Bitwise investment funds valued at around $873 million. According to a court filing on Tuesday, the court has also broadened the scope of Galaxy, a crypto investment firm, to aid FTX in the sale of its trust assets. Earlier this year, FTX enlisted the services of Galaxy to oversee the extensive digital asset portfolio of the estate. According to a court filing filed on November 3, FTX’s trust assets consist of shares in other Grayscale funds, such as the Grayscale Bitcoin Trust (GBTC) and a Bitwise crypto index fund. These assets had a total value of $744 million as of October 25.
Key Data Points
- Total market capitalization: The total market capitalization of the crypto market is currently around $1.48 trillion. This is a net $10 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 49.7%. This is 0.40% up 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 16.40%. This is 2.30% down from last week.
Bitcoin Price Analysis:
The $38,000 resistance level was breached by Bitcoin once more, but the bulls were unable to close above it. This demonstrates how ferociously the bears are guarding the level. Bears will need to move swiftly to knock the price below the uptrend line and $36,500 in order to stop the upswing. That can trigger a drop to the reliable 35,000 support level. The BTC/USDT pair might remain in the wide range between $33,000 and $38,000 for some time if there is a significant bounce off this level. The ETF filing will be a turning point for the Bitcoin market, and traditional investors have taken advantage of the rumor. When regular investors attempt to enter the market soon after the ETF announcement, they may sell their positions.
BTC Technical Indicator:
- In Q3 2023, the U.S. economy grew 5.2% faster than expected, the fastest expansion in nearly two years.
- Despite these positive milestones, Gross Domestic Income (GDI) climbed just 1.5%, indicating slower income generation and production costs.
- Rate cuts by the US Federal Reserve could occur sooner than most people think.
- Instead of the middle of the year as the market had predicted, the anticipated rate cuts may begin in Q1.
Bitcoin returns were 0.7% for this week. The Alpha Blue Chip Focused Strategy returns were −0.96% during the same period (23 November -29 November). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were 0.47% and −0.83%, respectively