The cryptocurrency market has experienced volatility this week due to speculation about the SEC's potential rejection or postponement of approvals, leading to a downturn in market sentiment.
From Monday to Saturday morning, the overall cryptocurrency market cap increased by 0.75% to reach $1,617 billion. Advancements in the BTC-spot ETF market fueled demand for cryptocurrencies. However, the week was marked by volatility due to false information and heightened scrutiny of the US crypto industry.
The total crypto market cap peaked at $1,726 billion on Tuesday before dropping to a low of $1,501 billion on Wednesday. Notably, the market cap surpassed the $1,700 billion mark for the first time since May 2022.
Crypto Market Cap Weekly Chart 060124
Throughout the week ending January 5th, progress towards establishing a BTC-spot ETF market continued, although both BTC and the wider cryptocurrency market experienced fluctuations.
Rumors on Wednesday about the SEC potentially rejecting or delaying BTC-spot ETF applications caused considerable turbulence in the crypto market. BTC saw a 4.42% decline but managed to bounce back from a low of $41,495, closing the day at $43,028.
Bloomberg Intelligence ETF Analyst James Seyffart addressed the rumors and provided updates on BTC-spot ETF-related activities. On Friday, Seyffart mentioned that all 11 BTC-spot ETF issuers were still in the race, indicating that although they haven't crossed the finish line, they are close to doing so.
However, there was a surprise development late on Friday regarding the BTC-spot ETF. The comment window remained open until the end of the Friday session, and Better Markets submitted comments just before it closed and the approval window opened. Notably, it was reported that the President and CEO of Better Markets has a close relationship with SEC Chair Gary Gensler.
The uncertainty surrounding the impact of the comment letter on the SEC tested buyer demand for BTC and the broader market. Despite the fluctuations, BTC maintained a positive trajectory, rising by 3.77% to $44,009 from Monday to Saturday.
BTC Weekly Chart 060124
The US House Committee on Financial Services revealed the upcoming sub-committee hearings, attracting attention from the cryptocurrency community. On January 10, the sub-committee on Capital Markets and Digital Assets, Financial Technology & Inclusion will conduct a hearing titled "Regulatory Whiplash: Assessing the Impact of FSOC's Ever-Changing Designation Framework on Innovation."
Amicus Curiae attorney John E. Deaton expressed his reaction to the announcement on social media, indicating his willingness to testify as someone who genuinely represents the interests of token holders, rather than crypto companies. He highlighted his previous work challenging the SEC and shedding light on Gary Gensler's alleged lack of investor protection. Attorney Deaton notably represented 75,000 XRP holders in the SEC v Ripple case, which led to the ruling on the Programmatic Sales of XRP.
In the SEC v Coinbase (COIN) case, the Securities and Exchange Commission (SEC) asked Judge Katherine Failla to take into account the recent ruling in SEC v Terraform Labs. The SEC's filing on January 4 argued that the Terraform Labs ruling further strengthens its opposition to Coinbase's Motion for Judgment.
The SEC emphasized that the Terraform court's opinion granted summary judgment for the SEC regarding the unregistered sale of crypto asset securities, supporting its position in the case against Coinbase. As a result of this development, Coinbase's shares declined by 1.09% to $153.98 on Friday. Overall, it was a challenging week for Nasdaq-listed stocks, with Coinbase ending the week down 11.5%. The Nasdaq Composite Index also closed the week ending January 5 with a 3.25% decrease.
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