Crypto Weekly 7 – 11 September 2023
The U.S. court has ruled in favor of Grayscale Investments in a lawsuit against the U.S. Securities and Exchange Commission (SEC) for not approving the conversion of the Grayscale Bitcoin Trust (GBTC) into a Spot Bitcoin ETF. This increases the likelihood of a Bitcoin ETF emerging if Grayscale Investments re-applies.
The U.S. SEC has postponed the review of Spot Bitcoin ETF applications from all candidates including BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital. New deadlines have been set for BlackRock, Wise Origin, Galaxy, and WisdomTree for October 17, and for Valkyrie and Bitwise on October 16.
James Seyffart and Eric Balchunas, Analysts from Bloomberg ETF predict a 75% chance of a Spot Bitcoin ETF being approved in 2023 and a 95% chance by the end of 2024.
Former U.S. SEC Chairman Jay Clayton stated that ultimately, the approval of a Bitcoin ETF will occur, making it easier for both institutional and retail investors to invest in crypto.
CryptoQuant revealed that the daily transaction fees on the Ethereum chain have decreased by more than 89% from a peak of 16,720 ETH on May 5 to a historical low of 1,719 ETH, driven by the growing popularity of Layer 2 solutions.
Bitfinex reports that 40% of the total Bitcoin supply has not moved for more than three years, indicating that long-term Bitcoin holders continue to accumulate and hold, maintaining Bitcoin’s upward trend in the long term.
Binance plans to discontinue support for BUSD by 2024, asking users to convert coins into other digital assets. Paxos Trust, the issuer and operator of BUSD, will cease trading of BUSD in February 2024, after which Binance will gradually withdraw support for BUSD.
The monthly trading volume of NFTs on the Ethereum chain has reached its lowest level in two years. Trading activities on markets like OpenSea, Blur, LooksRare, and X2Y2 have continuously decreased to $407 million in August, down 32% from $599 million in July.
Weekly Technical Analysis: 7 – 11 September 2023
BTC improved after positive news from Grayscale winning a lawsuit, but later faced selling pressure following the news that the U.S. SEC postponed the Bitcoin ETF decision. Despite this, the price did not hit a new low and managed to maintain support at $25,200. It is considered a buying opportunity if the price dips further, but a full recovery is unlikely unless the resistance at $28,000 is broken.
ETH also faced selling pressure alongside BTC but still maintained its support level at $1,600 without creating a new low. However, the price could continue to adjust downward as it has yet to break through resistance at $1,800. Short-term trading within this price range is advised until a clearer direction is chosen.
VELO increased by 31% in the past week, showing a consistent recovery for the second week. The short-term support level has been raised to 0.085 THB. If it maintains this level and can break through resistance at 0.115 THB, the upward trend may continue. Trading strategy suggests buying on the dip.
Baby Doge (BABYDOGE)
Baby Doge increased by 9.2% over the last week. However, the price is highly volatile, so caution is advised. If it falls below the previous low, there’s a chance it will reverse into a downtrend. Therefore, discipline in stop-loss setting is important. Short-term resistance for profit-taking is at the previous high.
Trading and Investment Considerations For The Week
Announcements regarding the U.S. economy, such as the Non-Farm Payroll and Unemployment Rate, had little impact on Bitcoin prices. However, the U.S. SEC’s decision to postpone the Bitcoin ETF was the primary reason for the heavy selling in the crypto market.
The next period for the SEC to announce their decision is mid-October. Until then, the crypto market is likely to remain directionless unless new positive or negative factors emerge.
Despite consistent selling pressure, it hasn’t been strong enough to shift Bitcoin out of its ‘sideway up’ trend. Most Altcoins underperformed Bitcoin, and even those in the growing Layer2 and Liquid Staking segments saw new lows.
Trading Strategy: Focus on coins that have strong upward momentum and are retracting to find entry points for buying on the dip. Avoid coins that are hitting new lows, as the direction is still downward and not conducive to trading.
-Cryptocurrency and Digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to own risk profile.
– Past Returns/Past Performance does not guarantee future returns/performance.
*Materials on Bitazza Weekly Newsletter are intended to be used and must be used for informational purposes only. The views, information, or opinions expressed are solely those of the individuals involved and do not necessarily represent those of Bitazza and its employees. The information contained herein is not intended to be a source of advice or financial analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice.
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