Cryptocurrencies continue to trade sideways on Wednesday, led by Bitcoin hovering near the $26,000 level and Ethereum at $1,640. This stagnation in the cryptocurrency market trading comes amid low traders' sentiment due to continued uncertainty about the future of the regulatory environment, especially in the United States.
Earlier this week, Grayscale argued that there is no valid basis for the Securities and Exchange Commission (SEC) to deny its request to convert the Grayscale Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF). The investment company stated that the SEC should not significantly distinguish between spot ETFs and funds based on Bitcoin futures contracts in holdings or exchange-traded product funds (ETPs) already traded in the market.
This argument comes in a week where the SEC delayed decisions on several applications to launch spot Bitcoin funds, including those from major asset managers such as BlackRock (NYSE:BLK) and Fidelity. This delay continues to weigh on market sentiment.
On Tuesday, Bitcoin's price remained steady at the $25,500 level. Analysts have highlighted that this price point is critical for Bitcoin, supported by several major moving averages. A flag pattern dating back to March 2023 has been noted with its bottom line tested five times without breaking down. Analysts predict that this pattern could continue until the end of September, forcing a decision on Bitcoin's direction.
Despite the stagnant market conditions, there has been a slight increase in open interests for Bitcoin over the past two days, reaching approximately 7.132 million positions. However, this level remains near lows not seen since last May after a sharp decline witnessed last August according to data from CryptoQuant.
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