Crypto News Today: Bitcoin Eyes $40,000 as Spot ETF Optimism Peaks

Key Insights:

• Bitcoin gained 2.60% on Friday, ending the session at $38,721.
• Investor optimism toward the SEC approving a batch of BTC-spot ETFs sent BTC to $39,000.
• On Saturday, the focus will remain on BTC-spot ETF-related news and SEC chatter.

Bitcoin Hits a New 2023 High of $39,011

On Friday, bitcoin (BTC) rallied 2.60%. After a 0.37% loss on Thursday, BTC ended the session at $38,721. Significantly, BTC visited the $39,000 handle for the first time since May 2022.

Investor anticipation of the SEC approving a batch of BTC-spot ETF applications fueled buyer demand.

Bloomberg Intelligence ETF Analyst James Seyffart shared the latest BTC-spot ETF updates. The increased activity raised investor expectations of a New Year batch approval of BTC-spot ETF applications.

On Friday, Seyffart reiterated the upcoming window opening for the SEC to approve a first batch of BTC-spot ETFs.

The ETF Analyst had this to say,

“Window is officially Jan 5th to Jan 10th. Really this means that any potential approval orders are going to come on either Monday Jan 8, Tuesday Jan 9, or Wednesday Jan 10. Mark your calendars people.”

Seyffart responded to a Scott Johnsson post on X (previously Twitter). Johnsson highlighted a January 5, 2024, deadline for rebuttal submissions relating to the Franklin and Hashdex applications.

Notably, there were no further updates relating to in-kind and cash-created subscriptions/redemptions.

While the markets are hopeful of the SEC approving the BTC-spot ETFs, the courts retargeted the SEC.

Ripple Chief Legal Officer Stuart Alderoty Targets the SEC

On Friday, Ripple Chief Legal Officer Stuart Alderoty sent another swipe at the SEC. After highlighting a Wall Street Journal article on Thursday, it was the US courts on Friday.

Alderoty had this to say,

“A troubling pattern emerges:

– Court finds the SEC demonstrated “hypocrisy” by making inconsistent arguments to the Court and not acting out of a “faithful allegiance to the law.” SEC v Ripple, 7/12/22

– Court agrees that the SEC defaulted on its duty to respond in good faith to Coinbase’s petition for crypto rulemaking. In Re: Coinbase, 6/6/23

– Court finds that the SEC’s “inconsistent treatment of similar products is arbitrary and capricious.” Grayscale v SEC, 8/29/23

– Court orders SEC to show cause why it should not be sanctioned for making false and misleading representations to the Court. SEC v Debt Box, 11/30/23.”

The increasing number of adverse comments from the courts bodes well for Ripple. Ripple and the SEC are currently engaged in remedies-related discovery. On the conclusion of discovery (February 12, 2024), the SEC must file its remedies-related brief by March 13, 2024.

The SEC v Ripple case entered its final stage in November. The parties are working toward a final penalty for XRP sales to institutional investors.

XRP gained 1.07% on Friday, ending the session at $0.6129.

Technical Analysis

Bitcoin Analysis

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

A BTC move through the Friday high of $39,011 would support a break above the $39,600 resistance level to target $40,000.

The market focus remains on BTC-spot ETF-related news and regulatory activity.

A drop below the $38,000 handle would give the bears a run at the $37,600 support level.

The 14-Daily RSI reading of 65.94 suggests a BTC move to the $39,600 resistance level before entering overbought territory.

Ethereum Analysis

ETH held above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH move through the Friday high of $2,110 would bring the $2,143 resistance level and the $2,200 handle into play.

However, a break below the $2,021 support level would support a fall to the $1,926 support level.

The 14-period Daily RSI at 61.47 suggests an ETH move to the $2,143 resistance level before entering overbought territory.