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⚡$48,000 Target Awaits as US SEC Nears Decision🗨️

Croxroad

23 Dec 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🇺🇲 US SEC Approval Catalyst

So, on Friday, Bitcoin was doing its thing, trading above $44,000. The interesting buzz came from Fox Business reporting that the SEC (Securities and Exchange Commission) is looking likely to give the green light to a Spot Bitcoin ETF by January 10.

Now, this ETF approval is a big deal. If it happens, it could bring in a wave of institutional money and demand for Bitcoin, potentially pushing its price towards the $48,000 mark. The market seemed to be holding its breath in anticipation of this news, and Bitcoin managed to stay above $44,200, holding onto gains made throughout the week.

According to Fox Business, sources close to the SEC are suggesting a positive decision by January 10, 2024. Bloomberg's ETF analyst Jeff Seyffart had already given it a 90% chance of approval before this date. The idea is that once this ETF gets the thumbs up, it could attract institutional interest and more capital into Bitcoin, especially in the short term.

Beyond the ETF drama, there are other factors in play. Argentina's Minister of Foreign Affairs confirmed the country's openness to using Bitcoin for contractual agreements, and El Salvador approved a law granting citizenship to foreigners who donate Bitcoin for government projects.

But, of course, the market is a mix of good and not-so-good signs. On the downside, on-chain metrics are showing a bit of a bearish outlook for Bitcoin. The supply on exchanges has increased, and there's been a rise in profit-taking activities by Bitcoin holders. Despite these indicators, the price of Bitcoin keeps climbing.

In terms of technical analysis, Bitcoin's been on an upward trend since November 7, 2022. It recently cleared a crucial resistance level at $42,349, and as of now, it's hanging around $44,200, maintaining a weekly gain of nearly 3% on Binance. Analysts are eyeing a potential rally to the 61.8% Fib level of $48,676, with no major obstacles in the way if the bullish momentum continues.

However, there's always a flip side. If Bitcoin closes below that $42,349 mark on a weekly basis, it might throw a wrench into the optimistic outlook for the asset. So, fingers crossed for the Bitcoin bulls!

🧨 $1.1 Billion Wager

Friday marks the expiration of $1.1 billion worth of Bitcoin options contracts, with a put/call ratio of 0.70 indicating that more longs (calls) are expiring than shorts (puts). Simultaneously, approximately 217,000 Ethereum options contracts, valued at around $491 million, are also set to expire. Despite the significant value of these expiries, it's unlikely to have a notable impact on spot markets, as the total cryptocurrency market capitalization has risen to $1.74 trillion, reaching its highest point since May 2022.

In the midst of these expirations, the crypto market is concluding the week with robust gains, particularly among altcoins. The focus is on Bitcoin as traders wonder if the expiring derivatives will boost its performance. Approximately 25,000 Bitcoin options contracts are set to expire today, though this batch is smaller than the previous week's expiration event and significantly smaller compared to the impending end-of-year expiry next Friday. The notional value of today's expiring Bitcoin options is $1.11 billion, with particular interest around strike prices of $40,000 and $45,000.

The options market, as noted by Greeks Live on December 21, is signalling mixed sentiments as Bitcoin hovers around $44,000. Notably, there's a considerable amount of put buying in both Bitcoin and Ethereum block trades, amounting to $100 million. Deribit reports a total open interest notional value of $16.4 billion, indicating the number of contracts yet to be settled or expired. While today's options expiries are not expected to significantly impact spot markets, the overall cryptocurrency market has gained 2.5% on the day, pushing total capitalization to $1.74 trillion, with Bitcoin showing a 1.4% gain and returning to resistance at $44,135.

❓ How and Where to Store Bitcoin?

Similar to how you keep regular coins in a physical wallet, Bitcoins are stored in a digital wallet designed specifically for cryptocurrencies. Each digital wallet has its unique public digital address, consisting of a string of approximately 30 characters, which is where you can receive your coins.

Creating a digital wallet is a cost-free process, and there's no restriction on the number of wallets you can have. These digital wallets come in various types, mainly differing in their levels of security. Choosing a wallet depends on individual preferences and the desired balance between convenience and security in managing your Bitcoin holdings.