Crypto markets steady in anticipation of spot ETFs

Crypto markets remained steady on Thursday, trading with low volatility in anticipation of the approval of crypto spot ETFs. 

Bitcoin traded sideways on Thursday, oscillating around the $37,700 level. If the BTC price declines, support can be found near $36,700, while further resistance may be encountered near $40,000. 

Ethereum price also remained stable on Thursday, trading around the $2,040 level. If Ethereum's price declines, it may encounter support near $1,980, while if it increases, resistance may be encountered near $2,130.

Approval expectations of spot exchange-traded funds (ETF) are propping up crypto markets. Last week, the US DOJ accepted a settlement for the charges against Binance, the world's largest crypto exchange, boosting cryptocurrencies. The deal forced Binance to pay a hefty $4.3 billion fine and CEO Changpeng Zhao had to step down. The future of the exchange remains uncertain as huge outflows were recorded on Tuesday. Binance users withdrew approximately $1 Billion following Zhao’s resignation. The settlement of the judicial case against Binance, however, has benefitted crypto markets. The drawn-out case against Binance has been a major stumbling block in crypto spot ETF approvals and its settlement renewed expectations of spot ETF approvals shortly. 

Cryptocurrencies are propped up by expectations that the Securities and Exchange Commission (SEC) will shortly grant spot Bitcoin ETF applications. BlackRock and other institutions have applied for a Bitcoin ETF, which would bring more institutional and retail money into crypto markets. The SEC has been hesitant regarding the future of Bitcoin ETFs, delaying the decision possibly until January. BlackRock has also filed an ETH spot ETF for approval, causing Ethereum prices to surge.

Increases in central banks’ interest rates are putting pressure on risk assets. Most major central banks, however, are hitting pause on rate hikes, propping up crypto markets. FOMC members have voted to keep interest rates unchanged at a 22-year high within a target range of 5.25% to 5.50%. The Fed’s decision to pause rate hikes has increased risk appetite, boosting cryptocurrencies, especially since markets anticipate that the Fed has reached its rate ceiling.

BTC/USD 1h Chart

ETH/USD 1h Chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article: