Key Insights:
- BTC slid by 4.42% on Wednesday, ending the session at $43,028. Significantly, BTC ended the four-day winning streak.
- Rumors the SEC could reject/postpone the BTC-spot ETF applications fueled a broad-based crypto sell-off.
- On Thursday, the focus will remain on BTC-spot ETF-related updates and regulatory activity.
Bitcoin-Spot ETF Rumor Ends Four-Day Winning Streak
Bitcoin (BTC) slid by 4.42% on Wednesday. Reversing a 1.69% gain from Tuesday, BTC ended the session at $43,028. Significantly, BTC ended the four-day winning streak.
BTC-spot ETF-related News Sends BTC and the Broader Market South
On Wednesday, rumors the SEC could reject/postpone the BTC-spot ETF applications sent BTC crashing to a session low of $41,495. Despite the fear, BTC partially recovered to end the session at $43,028. However, the rumor reminded investors of the inherent risk in second-guessing the SEC vis-à-vis cryptos.
There were no comments from the SEC, SEC Chair Gensler, or Senator Elizabeth Warrant to corroborate the rumor.
Bloomberg Intelligence ETF Analyst James Seyffart Puts the Record Straight
Bloomberg Intelligence ETF Analyst James Seyffart continued to signal SEC approvals within the January 8-10 window. Seyffart had this to say about the approval and launch timelines,
“My view is in line with Eleanor Terrett’s reporting. I think the SEC could begin signaling to issuers to expect approvals tho I’m still expecting official approvals Jan 8 – 10. I also think the gap between approval orders and actual trading will be measured in days — not weeks.”
Seyffart was responding to a post from Nate Geraci, co-founder of the ETF Institute. Geraci said the SEC could start approving BTC-spot ETFs on Friday, with trading to commence next week.
Bitcoin Price Forecast
Every new Bitcoin analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Bitcoin forecastsSin City Crypto interviewed James Seyffart about the chances of the SEC approving BTC-spot ETFs. Seyffart reaffirmed his view that the SEC would approve a batch of BTC-spot ETFs in the January 8-10 window. Seyffart also shared his views on the Matrixport report, saying,
“A lot of the things they were pointing to were stuff that we were writing about and talking about back in August and July. {…} All their concerns have kind of been asked and answered, so I’m not putting much faith into this report at all. And they got some facts wrong here and there, so we’re still looking January 8 to 10, and nothing has changed on our front.”
Seyffart also discounted media reports about the SEC continuing to meet issuers, saying this has been ongoing for months.
On Thursday, the focus will be on BTC-spot ETF-related updates.
However, a break below the $42,968 support level would bring the 50-day EMA into play.
The 14-Daily RSI reading, 52.31, indicates a BTC move to the $46,020 resistance level before entering overbought territory.
Ethereum Analysis
ETH remained above the 50-day and 200-day EMAs, affirming bullish price signals.
An ETH break above the $2,300 resistance level would support a move toward the $2,457 resistance level.
However, a fall through the 50-day EMA would bring the $2,143 support level into play.
The 14-period Daily RSI at 46.98 indicates an ETH break below the $2,143 support level before entering oversold territory.
