Cryptocurrency
Big Banks Show FOMO and Seek a Slice of the Bitcoin ETF Action
The interest in spot Bitcoin ETFs among financial institutions such as banks and brokerages is surging as they push for the Securities and Exchange Commission (SEC) to change the definition of crypto assets.
Under the new definition, they would have a bigger role in crypto, such as being Bitcoin ETF custodians.
Banks Petition SEC for Crypto Revisions
On February 14, a coalition of trade groups, including the Bank Policy Institute, American Bankers Association, Financial Services Forum, and Securities Industry and Financial Markets Association, sent a letter to SEC Chair Gary Gensler with a request. It highlighted the recently approved spot Bitcoin ETFs and noted the absence of American banks as custodians for these products.
The coalition requested that the SEC revisit and consider modifying the Staff Accounting Bulletin 121 (SAB 121), issued in March 2022, providing guidance on accounting for crypto asset custody obligations. They pointed out that it has been two years since the guidance issuance, and significant developments have occurred during this period, including the approval of spot Bitcoin ETFs.
The current guidance outlined in SAB 121 mandates that banks hold digital assets on their balance sheet, which is deemed costly and restricts their capacity to offer crypto custody services at a larger scale. The group wants the SEC to narrow the definition of cryptocurrencies to exclude traditional assets recorded on the blockchain, ensuring that assets such as tokenized deposits are not subject to strict crypto guidance.
Furthermore, they have requested that banks be exempted from the on-balance sheet requirements stipulated in SAB 121. However, they advocate for maintaining the disclosure requirements, enabling banks to participate in certain crypto activities while ensuring investors’ transparency.
FOMO Grapples Banks with Crypto ETFs’ Exclusion
In a post on X, Bitwise chief investment officer Matt Hougan remarked that the letter indicates Bitcoin ETFs have shifted the “tone around crypto regulation in Washington” as banks are eager to participate in the “digital financial wave.”
A weekly Bitcoin newsletter author, The Bitcoin Therapist, pointed out that the Q1 FOMO is already driving banks mad since they cannot hold BTC ETFs for their customers.
Meanwhile, as Bitcoin exchange-traded funds (ETFs) continue to gain momentum, the investment class is becoming increasingly appealing compared to traditional assets like gold. Recent reports indicate a significant shift in investor sentiment, with over $3 billion worth of gold exchange-traded funds (ETFs) being divested since the beginning of the year.
On the other hand, Bitcoin ETFs have been surging and have managed to amass over $4 billion in inflows, even though they are only 1/13th the size of the gold ETF market.
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Cryptocurrency
Bittensor (TAO) Skyrockets 80% Weekly, Bitcoin (BTC) Stopped Ahead of $65K (Market Watch)
Monday started on a positive note for bitcoin as it jumped to a four-week peak of $64,800 before it was stopped and pushed south.
The altcoins are sluggish on a daily scale, at least the larger-cap ones. Many of the mid- and lower-cap alts have charted notable gains.
BTC Halted at $65K
Bitcoin had an eventful seven-day period, which started with a price retracement from $60,000 to under $58,000 last Monday. The landscape changed mid-week when the US Federal Reserve announced the first rate cut in over four years, with a reduction of 0.5%.
Following the inevitable volatility, the cryptocurrency went on the offensive and added over four grand by Friday morning when it briefly topped $64,000. It failed there at first and spent the weekend trading sideways around $63,000.
This Monday was different than the previous one, as the bulls attempted another leg-up that drove bitcoin to a four-week high of just under $65,000. However, the asset was stopped there and pushed south by nearly two grand.
It’s worth noting that the week ahead is also expected to be quite eventful for the entire market, and you can see why – here.
As of now, bitcoin’s market capitalization has risen above $1.250 trillion, while its dominance over the alts stands at 54% on CG.
Alts With Massive Gains
While most larger-cap alts sit quietly today, with minor gains from ETH, BNB, LINK, AVAX, and TRX or insignificant losses from SOL, XRP, and SHIB, the mid and lower caps have produced some impressive increases.
Bittensor’s native token leads the pack with a 15.5% daily surge. Moreover, TAO has skyrocketed by 80% in the past week and trades at around $550 now. IMX, RENDER, AAVE, WLD, and NEAR are the other notable daily gainers.
IMX also finds a spot in the top performers on a weekly scale, with a 45% surge, followed by SUI (40%) and APT (30%).
The total crypto market cap has added around $20 billion since yesterday and is now at $2.320 trillion on CG.
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Cryptocurrency
Ripple (XRP) Headed for a ‘Parabolic Explosion,” Analysts Chip In
TL;DR
- XRP has been on an uptrend recently, with analysts predicting a potential sharp rise, possibly reaching $0.66 soon.
- Volatility is expected due to the ongoing Ripple v. SEC case, with the agency’s decision on whether to appeal the ruling still pending.
‘I Think XRP is Ready’
Ripple’s XRP gained momentum in the past two weeks, witnessing a price increase of around 10%. It briefly reclaimed $0.60 several hours ago before settling at the current $0.58 (per CoinGecko’s data).
According to some analysts, XRP may soon make the headlines with a mind-blowing rally. One example is the popular X user Bitlord, who thinks the token is ready to experience a “parabolic explosion vertically“ in the following hours.
“The amount of hate XRP gets is phenomenal Fact is, last time I called ripple it moved a few billion. Topped it too. Now I’d like to see that party start up again,“ they added.
The Great Mattsby contributed too, finding similarities between XRP’s late performance and Tesla’s (TSLA) performance during the 2010s. During that decade, the valuation of the stock skyrocketed from less than $2 to as high as $30. The EV giant continued its uptrend in the following years, and currently, TSLA shares are worth nearly $240. This is an interesting comparison, to say the least, given that both assets have literally nothing in common.
For their part, Dark Defender claimed XRP could be on the verge of spiking to $0.66. “Jan-2018 Resistance will be eliminated above $1.03, yes, exactly that point, interesting,“ the trader added.
Volatility Ahead Based on the Ripple v. SEC Case?
The price of XRP may see further ups and downs in the following weeks due to potential developments surrounding the lawsuit between Ripple and the US Securities and Exchange Commission (SEC).
The legal battle is in its final chapter after Judge Torres ruled in August that the company’s sales of XRP on secondary markets to retail investors did not constitute securities transactions. However, she ordered Ripple to pay a $125 million fine for violating certain laws.
The amount represents a 94% deduction on the amount initially requested by the regulator. As such, an appeal from Ripple’s side is highly unlikely. Moreover, CEO Brad Garlinghouse and CLO Stuart Alderoty said the firm will respect the court’s decision.
The SEC, though, might contend with the ruling. While the deadline for such a move is October 7, the agency remains silent on whether it will pursue that path.
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Cryptocurrency
Ethereum Price Analysis: Bulls Eye $3,000 as Next Target as ETH Charts 14% Weekly Gains
Ethereum has recently seen a surge in demand near the crucial $2.1K support zone, resulting in a significant bullish retracement. The price has now reclaimed the middle threshold of the multi-month descending channel, suggesting the potential for further gains toward the upper boundary near $3K.
By Shayan
The Daily Chart
On the daily chart, Ethereum experienced increased buying pressure near the critical support region around the lower trendline of the multi-month descending channel, which aligns with the $2.1K support zone.
This resurgence in demand triggered a bullish reversal, pushing the price above a critical resistance area that includes the channel’s middle boundary at $2,530 and $2.5K. Reclaiming this zone signals a potential shift in market sentiment toward bullishness, albeit temporarily.
However, Ethereum is approaching a crucial barrier of around $2.8K, where sellers will likely step up. The price action at this level will be pivotal in determining Ethereum’s medium-term direction. A successful breakout could signal the continuation of the bullish trend, while failure to clear this resistance may lead to renewed selling pressure.
The 4-Hour Chart
On the 4-hour chart, Ethereum saw a strong surge from the $2.1K support zone, corresponding with the flag pattern’s lower boundary.
This upward momentum carried the price toward the critical resistance range between the 0.5 ($2.6K) and 0.618 ($2.8K) Fibonacci levels. The short-term action suggests that the bearish momentum has subsided, with buyers now attempting to push the price above the $2.8K resistance.
The $2.8K level has been a strong barrier for the bulls in recent months, filled with supply and selling pressure. However, Ethereum could see a breakout if the momentum persists, leading to a short-squeeze and further gains.
On the other hand, a rejection at this crucial resistance may result in a continued sideways consolidation within the flag pattern, maintaining short-term uncertainty.
By Shayan
As Ethereum’s price continues to form higher highs and lows, approaching the $2.8K level, insights from the Binance liquidation heatmap provide valuable context for this movement. The ETH/USDT heatmap highlights significant liquidity pools often targeted by larger market participants or so-called “smart money.”
According to the heatmap, the $2.8K level contains the highest concentration of liquidity near Ethereum’s current price. Liquidity tends to act as a magnet for price, drawing the market toward these pools. As a result, this zone has become a key short-term target for Ethereum.
Given this dynamic, a bullish continuation toward the $2.8K level is highly likely driven by the market’s tendency to gravitate toward high liquidity areas. This makes the $2.8K price range a critical area to monitor, as a potential breakout above this level could signal the continuation of Ethereum’s current upward trend.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
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