Daily News | Bitcoin Lingers Around $31k, Potential ETF Approval Boosts Crypto Stocks, Belarus to Ban P2P Transactions; US Investors Prepare For Holiday
Crypto Daily Digest: Bitcoin Price Lingers Around $31,000 as Market Awaits Catalyst, Belarus Plans Ban on P2P Crypto Transactions
The price of Bitcoin (BTC) struggled to gain momentum on early Monday, lingering around the $31,000 mark, but quickly turned around as US participants entered the market. Traders eagerly awaited a catalyst that could potentially drive the market forward. Bitcoin traded within a tight range and made modest attempts to break the strong resistance level. While some optimistic traders believed that repeated testing of the resistance would eventually weaken it, others predicted a downside potential, with calls for a drop to $28,000. The market seemed to be in consensus that Bitcoin might soon reach its peak, possibly in the mid-$30,000 range, before a potential correction.
BTC open interest began to pick up in mid-June and remains the highest in 2023 - Data per Coinglass
In an interesting development, Bitcoin-adjacent stocks experienced a rally on Monday following the news that Cboe’s BZX Exchange had resubmitted applications for spot Bitcoin exchange-traded funds (ETFs). One notable example was the surge in shares of Coinbase, the chosen market for surveillance-sharing agreements in the ETF applications. Coinbase’s stock price rose over 10% to above $80. Cboe has been working closely with various providers such as Fidelity, WisdomTree, and ARK Invest to obtain approval from the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin ETF.
Similarly, BlackRock is also pursuing the same goal with Nasdaq. Cboe addressed the previous rejections by naming Coinbase as the exchange for surveillance-sharing agreements. The positive trend in Coinbase’s stock aligned with the upward movement of Bitcoin itself, which saw a 2% increase above $31,000. MicroStrategy, a firm holding a significant amount of Bitcoin, also experienced a 10% surge in its shares, reaching their highest level in over a year. The potential approval of a spot Bitcoin ETF by the SEC is considered bullish for Bitcoin as it could facilitate adoption by traditional investors with stock accounts.
Shifting the focus to regulatory news, the Ministry of Internal Affairs in Belarus revealed plans to introduce legislation banning peer-to-peer (P2P) cryptocurrency transactions. The aim is to combat fraud within the country. Under the proposed regulations, citizens will only be allowed to conduct crypto transactions through exchanges based in the Belarus Hi-Tech Park (HTP). This move is intended to enhance transparency and control over crypto activities. The ministry also announced the identification of 27 individuals providing illegal crypto exchange services, which are often exploited by fraudsters to launder the proceeds of their illicit activities. The introduction of a practice similar to foreign currency exchange procedures is expected to prevent the withdrawal of money obtained through criminal means, making it unprofitable for IT fraudsters to operate within Belarus.
The potential approval of a spot Bitcoin ETF and the tightening of regulations on P2P crypto transactions reflect the evolving landscape of cryptocurrency adoption and regulation. While market participants eagerly anticipate the outcome of these developments, the cryptocurrency market continues to navigate through its current price range, with traders closely watching for a significant catalyst that could potentially propel Bitcoin in either direction.
Bitcoin (BTC) $31,145 (-0.04%) - Neutral Outlook
Yesterday, we observed a significant increase in Bitcoin (BTC) value, and this surge was accompanied by a slightly higher trading volume compared to the previous two days. This suggests that momentum is beginning to strengthen. However, while the resistance zone on the 4-hour chart has been breached, the one on the daily chart may pose a more formidable obstacle. As the US holiday approaches, it is possible that trading volume will decrease.
Overview:
- Closest daily support zone: 30025 - 29475
- Closest daily resistance zone: 30690 - 31015
- Key Level: 28420 (Weekly High Between Dec. 21-28, 2020)
Daily Resistance zones
- 30690 - 31015
- 31530 - 32255
- 33100 - 33600
Daily Support zones
- 30025 - 29475
- 29095 - 28420
- 27970 - 27265
Macro: Investor Caution Looms as US Stocks See Marginal Gains Ahead of Independence Day
US stocks managed to eke out slight gains in a quiet trading session prior to the Independence Day holiday, defying concerns about cooling growth and a manufacturing slowdown. The S&P 500 Index inched up by 0.1%, with Tesla Inc. leading the charge after reporting record quarterly sales. Bank stocks also climbed, while the Nasdaq 100 Index held onto its gains from the best-ever first half of the year. Despite strong gains in the initial months, investors are tempering their expectations for the latter half of the year. However, technology shares received a boost from signs of moderating US inflation.
The US equity market witnessed significant inflows of cash into exchange-traded funds (ETFs), marking the highest level since October. Jim Bianco, president and founder of Bianco Research, expressed his belief that if an economic slump is avoided and political crises do not materialize, inflation could bottom out at 3% before making an upward turn. This scenario could potentially lead to additional interest rate increases.
The manufacturing sector, however, presented a bleak picture as US factory activity declined to its lowest level in over three years. Indicators for production and new orders suggested a pullback. Market participants are now eagerly awaiting upcoming earnings reports and economic data, such as the nonfarm payrolls report, to gain further insights into the health of the economy.
Meanwhile, the US Treasury yield curve inversion deepened, indicating expectations of a future economic slowdown. Despite a positive start to the year, underlying vulnerabilities have become apparent, prompting some experts to predict lackluster performance in the stock market for the rest of 2023.
In the energy market, US crude prices remained steady around $70 a barrel. Saudi Arabia’s announcement of extending its unilateral oil production cut by one month, combined with Russia’s implementation of fresh export curbs, contributed to maintaining supply constraints.
Looking ahead, attention will be on US Treasury Secretary Janet Yellen’s visit to Beijing as the US and China aim to improve bilateral relations following recent tensions.
In Asian markets, stock futures indicated slight declines following marginal gains on Wall Street. Benchmarks in Japan, Hong Kong, and Australia slipped by 0.3% or less, reflecting the modest increase in the S&P 500. The Nasdaq 100 managed to rise by 0.2%, despite manufacturing data revealing a slowdown. Currency markets remained stable, with the focus on the yuan, yen, and Australian dollar ahead of an upcoming interest-rate decision.
