Crypto News Today: BTC Visits Sub-$41,000 for the First Time Since ETF Approvals

Bob Mason
Published: Jan 19, 2024, 02:49 GMT+00:00

BTC has been on a downward trend since the SEC approved BTC-spot ETFs. Easing bets on a March Fed rate cut and the SEC continue to test appetite.

Crypto News Today

In this article:

Key Insights:

  • BTC slid by 3.41% on Thursday, ending the session at $41,333.
  • BTC-spot and ETH-spot ETF-related news, SEC activity, and reducing bets on a March Fed rate hike impacted the crypto market.
  • On Friday, crypto spot ETF-related updates and SEC activity need consideration.

Bitcoin Visits Sub-$41,000 as Post BTC-Spot ETF Blues Linger

BTC slid by 3.41% on Thursday. Following a 0.91% loss on Wednesday, BTC ended the day at $41,333. Significantly, BTC returned to sub-$41,000 for the first time since December 18.

On January 11, investors responded to the SEC approving BTC-spot ETFs. BTC struck a high of $49,023 before a return to sub-$41,000. These losses occurred despite the upcoming BTC halving event and the expected increase in demand for BTC.

Bloomberg Intelligence ETF analyst Eric Balchunas shared the latest trading volumes for the BTC-spot ETFs, saying,

“This is interesting, the Newborn Nine actually saw a 34% jump in volume today vs yesterday. Normally with a hyped up launch you see volume steadily decrease each day post-launch, rare to see it reverse back up. All but one saw jump too but GBTC change flat so wasn’t a volatility thing. Good sign IMO.”

BTC-spot ETF Trading Volumes slide.
BTC-Spot ETF Volumes 190124

Trading volumes were higher compared with Day 4. However, volumes were significantly below trading volumes over the first two days. The BTC pullback from the BTC-spot ETF approval high of $49,023 would leave early BTC-spot ETF investors with losses. However, a drop below to $40,000 could drive inflows into the BTC-spot ETF market.

The decline in BTC-spot ETF trading volumes coincided with a resurgent US dollar and a change in bets regarding a March Fed rate cut. According to the CME FedWatch Tool, the probability of a March Fed rate cut fell from 70.2% to 51.9% in one week.

There was also bad news for investors looking for a more rapid evolution of the US crypto-spot ETF market. Bloomberg Intelligence ETF analyst James Seyffart shared the latest crypto-spot ETF news. On Thursday, the SEC officially delayed the decision on the Fidelity ETH-spot ETF application.

The markets expected the SEC to delay the approval of ETH-spot ETFs. In contrast to BTC, the SEC considers ETH a security, reducing the chances of a near-term approval. Seyffart considers the May 2024 deadlines more significant for the crypto-spot ETF space.

The Bitcoin Fear & Greed Index declined from 63 to 51 on Friday. Significantly, the Index fell from the Greed zone into the Neutral zone. The downward trend suggests further BTC losses before a recovery.

BTC could face a stern test at $40,000. However, strong buyer demand at $40,000 could signal the start of a new rally.

BTC Fear & Greed Index returns to Neutral.
BTC Fear and Greed Index 190124

Technical Analysis

Bitcoin Analysis

BTC sat below the 50-day EMA while holding above the 200-day EMA: This sends bearish near-term but bullish longer-term price signals.

A BTC break above the 50-day EMA would support a move to the $42,968 resistance level.

On Friday, BTC-spot ETF-related news and SEC activity warrant investor attention.

However, a fall through the $41,000 handle would give the bears a run at the $39,861 support level.

The 14-Daily RSI reading, 41.38, suggests a BTC fall to the $39,861 support level before entering oversold territory.

BTC Daily Chart sends bearish near-term price signals.
BTCUSD 190124 Daily Chart

Ethereum Analysis

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

An ETH breakout from the $2,500 handle would support a move toward the $2,650 resistance level.

SEC activity and ETH-spot ETF-related news need investor consideration.

However, a fall through the $2,457 support level would bring the 50-day EMA and $2,300 support level into view.

The 14-period Daily RSI at 53.99 indicates an ETH return to the $2,600 handle before entering overbought territory.

ETH Daily Chart sends bullish price signals.
ETHUSD 190124 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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