Crypto News: Citi Embraces Blockchain to Service Institutional Clients

Key Insights:

• SEC’s request to access Binance US software denied.
• Crypto-Law’s Deaton: Institutions eventually adopt tech.
• Accusations: JPEX used misleading KOL statements.

The Monday Session Overview

SEC v Binance: SEC Loses a Court Motion: The ongoing SEC v Binance US, Binance, and Binance CEO, Changpeng Zhao (often known as CZ) case has gathered momentum. On Monday, the Court denied an SEC request to access Binance US software.

According to Bloomberg, Presiding Judge Faruqui, said, “He wasn’t inclined to allow the inspection at this time.”

However, the Judge suggested the SEC should offer a more specific request and approach additional witnesses.

Citigroup Joins the Blockchain Community in Earnest: On Monday, Citigroup (C) announced the launch of Citi Token Services. According to the press release, Citi Token Services uses blockchain and smart contract technologies to deliver digital asset solutions for institutional clients. Global Head of Citi Services, Shahmir Khaliq, said,

”Digital asset technologies have the potential to upgrade the regulated financial system by applying new technologies to existing legal instruments and well-established regulatory frameworks.”

The crypto community responded to the news. Crypto-Law US founder and Amicus Curiae attorney John E. Deaton said,

“They laugh at it, ignore it, fight it, get regulators to sue over it, and then, they adopt the technology.”

JPEX Hits the News Wires for a Second Session: On Sunday, crypto platform JPEX annouonced the suspension of trading in response to HK authorities investigating the platform for suspected fraud. On Monday, HK authorities arrested six persons linked to JPEX, including social media influencer Joseph Lam. According to the South China Morning Post, Joseph Lam was arrested on suspicion of conspiracy to defraud. The HK SFC reportedly stated JPEX relied on misleading statements made by key opinion leaders (KOLs), who are often paid promoters.

Technical Analysis

Bitcoin Analysis

BTC remained above the $26,755 support level after the positive Monday session. However, BTC remained below the 50-day and 200-day EMAs, affirming bearish price signals.

A bearish cross of the 50-day EMA through the 200-day EMA would support a BTC break below the $26,755 support level. A break below the support level would bring the trend line into play.

However, a hold above the $26,755 support level would give the bulls a run at the 200-day and 50-day EMAs. A break above the EMAs would bring the $28,187 EMA into view.

Favorable updates on the BTC-Spot ETF applications and ongoing SEC case against Coinbase (COIN) and Ripple would support a breakout.

The 14-Daily RSI reading of 54.09 supports a BTC move to the 200-day and 50-day EMAs before entering overbought territory.

Ethereum Analysis

ETH hovered above the $1,626 support level. However, ETH remained below the 50-day and 200-day EMAs, reaffirming bearish price signals. Avoiding the $1,626 support level would give the bulls a run at the 50-day EMA.

Favorable ETH-spot ETF news would support a breakout from $1,650 to target the 50-day EMA.

However, a break below the $1,626 support level would signal an ETH move to the $1,502 support level.

The 14-Daily RSI reading of 47.20 supports an ETH return to $1,600 before entering oversold territory.