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Bitcoin News Today: Miner Relief and Political Drama Drive Market Dynamics

By:
Bob Mason
Updated: Feb 25, 2024, 03:21 UTC

Key Points:

  • On Saturday, BTC gained 1.53%, closing the session at $51,540.
  • BTC-spot ETF market inflows and the rise of a Pro-Crypto Army on Capitol Hill contributed to the gains.
  • On Sunday, BTC-spot-ETF market-related chatter and US lawmakers will be in the spotlight.
Bitcoin News Today

In this article:

BTC-Spot ETF-Market Flows Steady Before a Big Week for the Markets

On Saturday, BTC gained 1.53%. Reversing a 1.09% loss from Friday, BTC ended the session at $51,540.

BTC-spot ETF market flows returned to positive territory on Thursday and Friday, contributing to the Saturday gains. Nonetheless, BTC needs another positive outing on Sunday to extend the weekly winning streak to five weeks.

Total net inflows were significantly lower than net inflows from the previous week. From Tuesday – Friday (February 23), the BTC-spot ETF Market saw total net inflows of $583.5 million. The BTC-spot ETF Market recorded total net inflows of $1,778 million in the previous week (Tuesday – Friday).

Falling bets on the Fed cutting interest rates in March and April likely contributed to the pullback.

However, the crypto market may be experiencing a renaissance moment on Capitol Hill that may significantly alter the crypto regulatory landscape.

Former US President and Presidential Candidate Trump Talked Bitcoin

This week, former US President Donald Trump talked BTC to Fox News. MicroStrategy (MSTR) founder and Chairman Michael Saylor shared a clip from Donald Trump speaking on the Ingraham Angle. Fox News Host Laura Ingraham asked the former president,

“Isn’t the next logical step for you to embrace bitcoin because bitcoin is obviously decentralized, and the government can’t get its hands on it? What about bitcoin and all the young people, including African Americans, who are very interested in it?”

Trump replied,

“Well, a lot of people are doing it. I always liked one currency, I call it a currency. I like the dollar. But a lot of people are doing it, and frankly, it’s taken a life of its own. You probably have to do some regulation, as you know, but many people are embracing it, and more and more, I’m seeing people wanting to pay bitcoin, and you’re seeing something that’s interesting. So, I can live with it, one way or the other.”

The change in views toward BTC and the digital asset space comes as the race heats up for the White House.

Significantly, the Democrats are facing increasing scrutiny over their anti-crypto stance.

Republicans Begin Fight Against the Anti-Crypto Army

Senator Elizabeth Warren and the Anti-Crypto Army could face a tough summer.

Former President Trump joins a growing list of politicians identifying the need to support the digital asset space. Senator Elizabeth Warren will face an uncomfortable summer as the crypto community retaliates to the Senator Warren-led anti-crypto campaign on Capitol Hill.

On Monday, Amicus Curiae attorney and CryptoLaw US founder John Deaton announced his entry into the race for Massachusetts. Deaton will go head-to-head with Senator Elizabeth Warren, who is reportedly in a frantic panic to stave off a Deaton victory.

The move to oust Senator Warren followed several anti-crypto maneuvers, including the Digital Asset Anti-Money Laundering Act. In December, Senator Warren called on US banking CEOs to support the bill on Capitol Hill. In an anti-crypto tirade, JPMorgan CEO famously said,

“If I was the government, I would close it down.”

Senator Warren and the Digital Asset Anti-Money Laundering Act

House Majority Whip and Republican Tom Emmer focused on Senator Warren and her tactics to gain support for the Digital Asset Anti-Money Laundering Act. Senator Warren used inaccurate data from the Wall Street Journal to lure US lawmakers to support her bill.

Last week, Republican Emmer shared footage from a committee hearing on Capitol Hill. US Undersecretary Brian Nelson affirmed digital assets are not the preferred means of terrorist financing. Furnished with the facts, Undersecretary Nelson had a different perspective than Senator Warren.

Republican Emmer indirectly referenced Senator Warren and her use of inaccurate information. In December, Senator Warren said,

“The Treasury Department is making clear that we need new laws to crack down on crypto’s use in enabling terrorist groups, rogue nations, drug lords, ransomware gangs, and fraudsters to launder billions in stolen funds, evade sanctions, fund illegal weapons programs, and profit from devastating cyberattacks.”

While Senator Warren faced increasing scrutiny, bitcoin miners received some positive news.

US Energy Information Administration Cancels Reporting from BTC Miners

On Saturday, the US Energy Information Administration (EIA) gave Bitcoin miners a much-needed boost. The EIA announced,

“EIA will not enforce any requirement to file Form EIA-862 nor seek or impose any fines, penalties, or other adverse consequences based on a failure to respond to the survey through March 22, 2024. In addition, EIA will sequester and not utilize any data received from any party responding to Form EIA-862 through March 22, 2024.”

It is worth noting that the SEC does not consider BTC a security. However, anti-crypto maneuvers would impact buyer demand. A crypto-friendly stance on Capitol Hill could allow lawmakers to roll out a much-needed crypto regulatory framework.

Technical Analysis

Bitcoin Analysis

BTC sat well above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC return to the $52,500 handle would support a move to the $53,000 resistance level and the Tuesday high of $53,026.

BTC-spot ETF market-related chatter and US regulatory scrutiny need consideration.

However, a fall through the $50,500 support level would bring the $48,178 support level into play.

The 14-Daily RSI reading, 68.55, indicates a BTC return to the $52,500 handle before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 250224 Daily Chart

Ethereum Analysis

ETH hovered well above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH break above the Sunday morning high of $3,048 would support a move to the $3,200 resistance level.

ETH-spot ETF-related news would draw investor attention.

However, an ETH fall below the $3,000 handle would give the bears a run at the $2,770 support level.

The 14-period Daily RSI at 75.63 shows ETH in overbought territory. Selling pressure could intensify at the Monday high of $3,048.

ETH Daily Chart sends bullish price signals.
ETHUSD 250224 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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