ยฉ Reuters.
The cryptocurrency market has shown signs of recovery following a major drop earlier this week, with (BTC) maintaining bullish momentum and (ETH) targeting key resistance levels. The rally comes after crypto markets experienced a sharp loss on Tuesday, with a drop erasing $65.01 billion in value, raising concerns about Binance's liquidity. However, Binance managed to stabilize its position by complying with withdrawal requests, although its native token, BNB, has not fully recovered from the drop.
SEC Commissioner Hester Peirce's supportive comments on Bitcoin boosted market confidence. Following his comments, shares of Coinbase (NASDAQ ๐) saw a rise of more than three percent on Wednesday amid speculation that it could benefit from Binance's recent troubles. The insights were shared by John E. Deaton, reflecting the feeling that Coinbase could gain an advantage in the current market scenario.
In addition to the market movements, there is growing anticipation for the upcoming SEC hearing against Coinbase scheduled for January. The case will address whether Coinbase has been illegally operating as an exchange or broker, which has important implications for cryptocurrency regulation and offerings.
Further influencing the market is Grayscale's updated spot Bitcoin ETF filing, which now includes an in-kind redemption process that appears to align with Blackrock's (NYSE:) preferences. This detail was highlighted by Bloomberg Intelligence ETF analyst James Seyffart during his recent conversations with the SEC.
Technical indicators suggest that BTC remains bullish above the fundamental exponential moving averages (EMAs), with an eye on breaching the $37,000 threshold. Similarly, ETH has maintained strong support and is targeting resistance levels around $2k. These developments mark a notable shift in the cryptocurrency landscape as both investors and regulators continue to navigate the changing digital asset space.
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