In the ever-evolving landscape of cryptocurrency, Bitcoin (BTC) has recently reversed its downward trend, surpassing the significant $41,000 mark. This resurgence not only bolsters confidence in Bitcoin but also paves the way for other major cryptocurrencies like Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), Ripple (XRP), and Litecoin (LTC), all of which have witnessed modest gains.
The overall crypto market cap now stands at an impressive $1.56 trillion, marking over 0.30% increase in the last 24 hours. This positive momentum in the crypto world is partly attributed to the burgeoning interest in Bitcoin ETFs, a development that underscores the cryptocurrency’s growing acceptance in mainstream finance.
Concurrently, Tesla’s unwavering hold on $380 million worth of Bitcoin through Q4 2023 plays a critical role in shaping market sentiment, while the SEC’s postponement of Grayscale and BlackRock’s Ethereum ETFs introduces a layer of uncertainty in the ETH market.
Tesla’s Q4 2023 Bitcoin Holdings: Influence on BTC Prices
In Q4 2023, Tesla’s Bitcoin (BTC) holdings remained steady, as indicated in their recent earnings report released on Wednesday. The report didn’t mention any Bitcoin transactions, suggesting no buying or selling during the quarter.
Currently valued at $387 million, Tesla owns approximately 9,720 BTC, ranking as the third-largest public holder after MicroStrategy and Marathon. Tesla initially invested $1.5 billion in Bitcoin in February 2021, acquiring around 43,000 BTC.
Tesla’s #Bitcoin holdings stand strong at $184 million since Dec 2022, according to the Q4 2023 earnings report.
No new purchases or sales, marking a period of inactivity in their #Crypto journey.#Tesla currently ranks fourth among public companies with 10,500 $BTC. …
— Bitcoinbsc (@Bitcoinbsctoken) January 25, 2024
Despite selling 75% of their holdings in Q2 2022 amid COVID uncertainties, the electric car giant continues to maintain a substantial Bitcoin reserve.
$BTC holdings of Elon Musk’s Tesla, worth nearly $387 million at current prices, remained unchanged in Q4 2023.https://t.co/lPfhWkK8jj
— David odeyale (@odeyale_david) January 26, 2024
Therefore, Tesla maintaining its Bitcoin holdings in Q4 2023 signals stability, impacting BTC price sentiment positively. With Tesla holding a significant amount, investor confidence in Bitcoin could strengthen, potentially contributing to sustained or increased value.
SEC Postpones Grayscale, BlackRock Ethereum ETFs: ETH Market Impact
The U.S. Securities and Exchange Commission (SEC) has postponed a decision on Grayscale Investments’ request to convert its Ethereum trust product (ETHE) into an exchange-traded fund (ETF).
However, BlackRock’s similar application also faced a delay. The SEC has been cautious about spot crypto ETFs, recently allowing only spot bitcoin ETFs in January. Therefore, the delay in deciding on Grayscale and BlackRock’s applications is not unexpected.
In no surprise, the @SECgov has delayed decisions on spot #etherETF applications from Grayscale and BlackRock.https://t.co/hLt54lbv7m
— CoinDesk (@CoinDesk) January 26, 2024
The filings raise questions about the similarities between spot Ethereum and spot bitcoin ETFs, addressing concerns like market manipulation and the size of the CME futures market. So, this echoes the SEC’s previous inquiries about bitcoin.
Consequently, the SEC’s delay in approving spot ether ETFs from Grayscale and BlackRock has introduced uncertainty, potentially impacting Ethereum’s price. Market participants keenly await regulatory decisions, as approval could positively influence ETH’s value, while continued delays may introduce volatility.
Bitcoin Price Prediction
The latest chart for Bitcoin (BTC) showcases a decisive break from its previous downtrend, marked by a bullish breakout past the critical $40,150 threshold. This movement is reinforced by the formation of bullish engulfing candles, suggesting a strong upward momentum.
The pivot point at this juncture is defined by the green line, situated at $40,957, serving as a fulcrum for price action.
Bitcoin Price Chart – Source: Tradingview
On the downside, Bitcoin has immediate support at $38,618. Should this level be breached, Looking above this pivot, we identify three resistance levels at $41,927, $43,394, and $45,581, delineated by blue lines, which could pose successive hurdles for the ascent.
Conversely, the red lines below the pivot point indicate support levels at $39,998, $39,644, and $38,618, which may offer a foundation for price stabilization in the event of a pullback.
Ethereum Price Prediction
Ethereum‘s price action on January 26th shows a consolidation pattern, with the cryptocurrency trading near $2,254.6. It’s cradled by the pivot point at $2,237.1, which acts as a near-term fulcrum for price movements.
Resistance levels are evident at $2,475.3, $2,426.7, and $2,360.1, each potentially capping upward moves. Support levels, denoted by the red lines, are positioned at $2,250.1, $2,237.1, and $2,168.9, offering floors for any retracements.
Ethereum Price Chart – Source: Tradingview
The 50-day Simple Moving Average (SMA) hovers at $2,237.1, providing a dynamic level of potential support.
Current price stability near the pivot point suggests a tussle between bulls and bears, with a breakout above or below this zone likely to dictate the short-term trend.
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