Weekly Crypto Recap with NewsCrypto

Welcome back, NewsCrypto enthusiasts! It's time for another edition of the Crypto Recap newsletter.

Today we are going to talk about the price action of Bitcoin, it looks worse than it actually is and we are going to dive deep into the SEC’s lawsuit of Coinbase.

What's on the menu today?

1. Breaking Crypto News

2. Crypto Fear and Greed Index

3. BTC TA Analysis

4. Coinbase vs SEC

5. Funniest Meme of the Week

News Recap

· VanEck will liquidate its futures Bitcoin ETF now that their spot Bitcoin ETFs have been approved.

· X launched a new dedicated payments account!

· Kevin O’Leary says spot bitcoin ETFs are great news for institutional investors.

· GameStop’s NFT marketplace is getting shut down on Feb. 2nd.

· Robert Kiyosaki has expressed concerns about the rapid rise of the U.S. national debt.

Do you want to read more about each piece of news?

Check out the News section on our educational platform here 👇🏼


Crypto Fear and Greed Index

Bitcoin TA Analysis

· Bitcoin Weekly Time Frame

At the time of writing Bitcoin is below the white rectangle (12h order block) which was a support for quite a few weeks now. More about that on the daily time frame.

We can see a huge red wick that formed after the approval of spot Bitcoin ETFs. This is now making the chart look like it wants to go down even further. Price hit the buy-side liquidity and quickly retraced below the resistance and has now been going down for two weeks straight.

Bitcoin must close or at least get back up above the support zone if there is going to be a pre-bull market altseason. We talked about that in-depth in the previous newsletter, if you haven’t read it yet here is the link👇 https://blog.newscrypto.io 

· Bitcoin Daily Time Frame

We added the Fibonacci extension for determining an OTE (optimal trading entry). Here you can see we determined a range based on the previous break of structure and the top that formed upon the approval of spot ETFs.

It wouldn’t be the end of crypto if Bitcoin dipped all the way down to $38.5k but it would result in altcoins getting smoked. There is no need to worry yet because Bitcoin bounced from the 78.6 Fibonacci level (OTE) a couple of times already so this could be just another shake-out before the retracement into the support zone and if you are a day trader this could be a great trade to take.

Now is the time to be patient and if you are inexperienced it may be best if you forget about your coins for a year or so and then come back to check the value of your portfolio.

Coinbase vs SEC

In the red corner, we have Coinbase, the heavyweight US crypto exchange, and in the blue corner, the formidable SEC. Bloomberg's senior litigation analyst Elliott Stein has thrown in his two cents, predicting a 70% chance of Coinbase securing a full dismissal in this lawsuit.

The Turning Point

The plot got even more interesting when Coinbase provided a more precise definition of an “investment contract” than the SEC. It's like watching a spelling bee where the contestant corrects the judge's pronunciation. Stein found Coinbase's definition more compelling, emphasizing investment in a business rather than just an ecosystem.

The SEC's Stance

The SEC alleges that Coinbase, by staking customer assets and earning rewards, is essentially offering and selling investment contracts, thus falling under its regulatory umbrella. They also claim Coinbase operated as an unregistered broker. Coinbase, on the other hand, argues that there's no straightforward path for a crypto exchange to register for a license. It's like telling someone to find a door in a room with only walls.

XRP's Ripple Effect

Stein referenced the SEC vs. Ripple case, where Ripple achieved a partial victory in July 2023. The judge ruled that XRP is not considered a security for retail sales on cryptocurrency exchanges. This decision could be a game-changer for Coinbase's lawsuit, suggesting that sales of digital assets on public exchanges don't neatly fit into the traditional investment contract framework.

Judge Failla's Quandary

U.S. District Judge Katherine Polk Failla, who presided over the five-hour hearing, asked the SEC attorneys to clarify why a digital token issuance would meet the Howey test, arguing the case was “too broad.”

The SEC's Lawsuit

The SEC filed a lawsuit against Coinbase on June 6, 2023, alleging that 13 tokens listed on the exchange were securities. This list includes some well-known names like Solana (SOL), Cardano (ADA), and Polygon (MATIC).

Wrapping up

As we navigate this legal labyrinth, one thing is clear: the outcome of Coinbase vs. SEC will have significant implications for the crypto world. Whether Coinbase emerges victorious or the SEC proves its point, this case is a landmark moment in the ongoing saga of crypto regulation.

Funniest Meme of the Week

Soon no one in crypto will have to eat this anymore