Bitcoin’s Surge Amidst Coinbase and Valkyrie Moves
BTC/USD at Confluence Zone Again. Will the Story Be Different This Time?
The world of crypto is starting to pulse rapidly, with a Bitcoin push above $27,000 and a few developments from major players.
Coinbase, one of the biggest crypto exchanges in the world, recently introduced a derivatives platform for its global clients. It’s likely that stricter regulations from the U.S. SEC in recent times have prompted Coinbase to explore alternative markets. To counter declining spot trading volumes in the crypto world, Coinbase initiated an international branch to boost its revenue.
The company now has a license from the Bermuda Monetary Authority (BMA) that lets institutions engage in perpetual futures trading outside of the US. Coinbase stated: “Today, we are excited to announce that Coinbase International Exchange has received additional regulatory approval from the BMA to extend perpetual futures trading to non-US retail customers. In the coming weeks, we will begin to offer eligible customers access to regulated perpetual futures contracts on Coinbase Advanced.”
This move might attract more participants to the crypto space, potentially benefiting Bitcoin, the Top 10 coins, and the overall market.
Valkyrie Wins the ETF Race
According to FOX Business, Valkyrie Investments is the first to secure approval for an Ethereum futures-based ETF, a significant move for US digital assets. While investors can buy tokens directly from platforms like Coinbase, ETFs, traded on major exchanges like Nasdaq, can broaden retail crypto involvement.
Since October 2021, the SEC has allowed Bitcoin futures-based ETFs. Apart from Valkyrie, eight firms, including VanEck and Grayscale, have sought to introduce Ether ETFs. Companies like BlackRock aim to introduce spot Bitcoin ETFs; however, the SEC remains wary of mainstreaming spot ETFs. Keep in mind that futures ETFs are different from spot ETFs.
Chart Analysis – BTC/USD
Perhaps because of these developments, on Thursday, cryptocurrency markets surged and Bitcoin, the apex digital currency, saw its price soar beyond the $27,000 mark. Yesterday’s high was $27,297, while the closing price was $27,026. At the time of writing, BTC/USD is trading at 27,025, with a 1.36% increase for the 7 days and a 3.09% gain for the last 24 hours.
Right now, BTC/USD is facing a major resistance zone, composed of several factors: the bearish trend line drawn from the year’s high, the horizontal resistance at $27K, and the upper Bollinger Band. However, the bulls have managed to close a Daily candle above the 50-day Moving Average, which could be a trigger for other buyers to chime in.
Earlier this month, BTC/USD reached the same confluence zone and failed to break it. If the story is different this time, we will possibly see an extended rally. Keep an eye on the PCE Price Index release that’s scheduled for later today. It can have a strong impact on the US Dollar, and hence on the BTC/USD pair.
