Finance Giants' Embrace of Bitcoin ETF Opens Investment Door -

Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), has emphasized that the agency’s approval of 11 spot Bitcoin Exchange-Traded Funds (ETFs) does not constitute an endorsement of Bitcoin. He maintains the position that Bitcoin is primarily a speculative commodity and is often used for illegal transactions.

Andrew Peel, the Head of Digital Asset Markets at Morgan Stanley, commented on the approval of spot Bitcoin ETFs as a significant milestone in the adoption of Bitcoin within the global financial system. He highlighted that Bitcoin’s rapid adoption is remarkable, with around 100 million people worldwide currently holding the cryptocurrency, and Bitcoin ATMs are now present in over 82 countries.

JPMorgan analysts have stated that spot Bitcoin ETFs could attract up to $36 billion in new investment capital. This substantial influx is expected to be primarily driven by retail investors transitioning from trading on websites to using brokers. Additionally, there will likely be a shift of funds from Grayscale Bitcoin Trust and Bitcoin Futures funds.

Tom Staudt, the President of ARK Invest, believes that Bitcoin has become a “public good” accessible to everyone following the approval of Spot ETFs. He asserts that Bitcoin now serves as an investment asset for generating returns and diversifying risk, particularly against inflation.

Robinhood, the popular trading app, has revealed that the approval of Spot Bitcoin ETFs will facilitate the integration of digital currencies into the traditional financial system. This development will enable Robinhood customers to conveniently manage their digital assets. The company is eager to list Spot Bitcoin ETFs on Robinhood as quickly as possible.

The market value of PayPal’s Stablecoin, PYUSD, has exceeded $290 million, marking a 70% increase from the previous month. This growth represents a significant jump from its initial value of $43.3 million in August last year, placing PYUSD among the top ten issuers of stablecoins.

JPMorgan estimates that there is only a 50% chance that a Spot Ethereum ETF will be approved in May. For this to happen, the U.S. Securities and Exchange Commission (SEC) would need to categorize Ethereum (ETH) as a commodity, similar to Bitcoin, rather than as a security.

Weekly Technical Analysis: 16-22 January 2024

Bitcoin (BTC)

BTC experienced a Sideway Down movement this week. There’s still a possibility that it might retest the previous low support level at $40,200. This support level should be considered a stop-loss point for short-term traders. On the other hand, the short-term resistance is at $46,000. If BTC fails to break through this point, it might continue to decline.

Support: 1,420,000 THB Resistance:1,580,000 THB

Ethereum (ETH)

ETH showed a strong upward adjustment following the announcement of the Bitcoin ETF. The trend is moving towards an uptrend in the bigger picture. The key support level to watch is $2,150, to be used as a support level in case of a price retracement. The short-term profit-taking level is set at $2,700, and if it surpasses this point, it will test the main resistance level at $3,000.

Support: 83,000 THB Resistance: 92,000 THB

Compound (COMP)

COMP saw a 24.86% increase over the past week, indicating a recovery trend from its previous downtrend. The strategy to consider is Buy On Dip. The initial support level for buying is at 1,840 THB. If the price tests the resistance level at 2,160 THB, it could be an opportunity to take profits. However, if it breaks through this level, the trend could shift to an uptrend.

Support: 1,840 THB Resistance: 2,160 THB

Chainlink (LINK)

LINK has increased by 19.33% over the past week, showing signs of starting to recover once again. Watch out for the support level at 490 THB. If it breaks below this level, there might be further downward adjustments. However, if it holds, the next resistance target is at 600 THB. It is anticipated that LINK will recover based on the overall uptrend observed in the larger chart.

Support: 490 THB Resistance: 600 THB

Trading and Investment Considerations For The Week

The release of the December CPI figures, which came out higher than market expectations, suggests that there may not be a positive surprise in the form of faster-than-expected interest rate cuts by the U.S. Federal Reserve. However, this has not significantly negatively impacted Bitcoin.

Bitcoin’s price decline has led to a continuous downtrend in the Bitcoin Dominance index. Since the announcement supporting Bitcoin ETFs, the Total2 and Total3 indices, which measure the market cap of Altcoins excluding and including Ethereum, respectively, have shown an uptrend. This indicates the possibility of entering an Altcoin Season.

The market is expected to speculate in Ethereum due to the anticipation of establishing a Spot ETF, similar to Bitcoin. This could lead to Ethereum’s price outperforming the overall market until there are signs that suggest the ETF might not be approved.

Meanwhile, Bitcoin might experience a Sideway Down movement for some time until it approaches the next Halving event, which could trigger speculative interest. Currently, there are no significant negative factors pressuring Bitcoin, so a sharp price drop is unlikely.

The trading strategy is to look for Altcoins that outperform the market or are in trending sectors, such as Blockchain Layer2. Ethereum can be considered for medium-term investment, as its price has lagged behind Bitcoin significantly and still has upside potential for further growth.

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