Daily News | The Approval of Bitcoin Spot ETFs Will Add $1 Trillion to the Crypto Market Cap, Tesla Did Not Sell BTC in Q3

Crypto Daily Digest: Fidelity submits the latest version of Bitcoin spot ETF; Tesla did not sell Bitcoin in the 3rd quarter

A public regulatory document shows that Fidelity has submitted an updated version of the Bitcoin spot ETF prospectus to the SEC, which includes details of custody arrangements, hard fork related mechanisms, valuation and pricing sources, GAAP compliance, risk disclosure around regulatory uncertainty, and the energy consumption nature of mining.

CryptoQuant, a data analysis company, wrote in a recent report that if Bitcoin spot exchange-traded funds (ETFs) are approved, Bitcoin will become a $900 billion asset, and the entire crypto market will grow by $1 trillion.

CryptoQuant stated that if issuers applying to list Bitcoin ETFs invest 1% of their managed assets (AUM) into these ETFs, approximately $155 billion may enter the Bitcoin market. This accounts for almost one-third of Bitcoin’s current market cap. If this situation occurs, the price of Bitcoin is assumed to rise between $50,000 and $73,000.

According to CryptoQuant’s model, historically, in previous bull markets, Bitcoin’s market value growth was 3-5 times its realized capital. CryptoQuant added that this indicates that for every $1 of new funds entering the Bitcoin market, the market value may increase by $3-5.

Fox journalist Eleanor Terrett posted on the X platform that the SEC has included cryptocurrencies as a key focus of its 2024 review. However, most cryptocurrency companies are not registered with the SEC and therefore do not pay registration fees.

Terrett further stated, “Does this indicate that SEC Chairman Gary Gensler is prioritizing the processing of cryptocurrencies using institutional resources and funds paid by registered companies, which he has not yet been authorized to regulate? Or does the SEC expect more cryptocurrency companies to register with the institution in 2024?” According to the latest news, SEC Chairman Gary Gensler stated that the SEC is still weighing proposals for Bitcoin spot ETFs.

According to CoinDesk, Standard Chartered Bank plans to host BTC and ETH for institutional clients in Dubai in Q1 2024. In the future, Standard Chartered Bank also plans to create a cryptocurrency settlement network.

According to Bloomberg, Galaxy Digital founder Mike Novogratz expects the SEC to ultimately approve exchange-traded funds for direct investment in Bitcoin this year. And it is said that Grayscale’s victory is significant, and significant positive news will drive the market higher.

According to DL News, after the JPEX incident, the attitude of Hong Kong residents towards crypto assets has deteriorated. A survey by the School of Business Administration at the Hong Kong University of Science and Technology shows that 41% of 2200 respondents aged 18 or above are currently unwilling to hold any crypto assets. This result represents a significant increase of 12 percentage points compared to a similar survey conducted on 5700 people between April and May.

Although 84% of respondents claim to have heard of virtual assets, only 27% hold or currently own crypto assets. In addition, the desire to own crypto assets in the future has also weakened, with only 20% of people expressing interest, a decrease of 5 percentage points from the previous survey. Among those willing to invest in crypto assets, 80% plan to hold crypto assets worth HKD 50000 or less.

According to CoinGap, according to Tesla’s latest third-quarter financial report, the company did not sell any Bitcoin during that quarter, marking its fifth consecutive quarter without buying or selling operations. As of September 30th, Tesla holds approximately 9720 Bitcoins with a market value of approximately $275.6 million. Tesla did not mention Bitcoin in its third-quarter financial report, indicating that the company did not convert digital currency into fiat currency. Proactively selling Bitcoin may affect its profitability and cash balance, which will be recorded in the financial report.

Since the second quarter of last year, Tesla has not bought or sold Bitcoin. In the second quarter of last year, Tesla sold over 30,000 Bitcoins for $936 million, accounting for approximately 75% of its Bitcoin holdings. The company initially purchased Bitcoin worth $1.5 billion in early 2021.

In terms of data, the market share of Bitcoin has risen to a new high since April 2021, temporarily reporting at 49.31%; The market share of Ethereum is temporarily reported at 16.72%; The market share of USDT is temporarily reported at 7.43%. The current total market cap of cryptocurrencies across the entire network is approximately $1.1298 trillion, with a daily increase of 0.7%.

Today’s Main Token Trends

BTC

The high point of this week briefly reached $30,000, and an attempt was made to hold the key support level at $28,125. Short-term resistance is at $29,500. The medium-term critical breakthrough target is at $33,085. If this level is not surpassed, it may mark the end of this year’s rebound trend. It is advisable to continue monitoring resistance levels.

ETH

This week saw a significant rebound in the market, but the short-term and overall rebound trends remain weak. The target for the rebound at $1,631 has been reached, and it continues to fluctuate below the $1,570 level. The downside target continues to be around $1,465, making a long-term bearish strategy advisable.

STARL

A previous standout project during the last bull market, it went from a base price of $0.00523 to a peak of over $0.05562, more than tenfold. Short-term expectations suggest that the upward movement may be complete, and a pullback to the $0.00321 support level is anticipated.

Macro: Gold prices may exceed $2K, the Fed leans towards the dovish stance

The US dollar, gold, US treasury bond bonds, and crude oil rose simultaneously again, which was similar to the situation on Friday. But this time, the difference is that the decline in the US stock market is much greater than last Friday. If there is another abnormal decline like last night, the global market sentiment will quickly deteriorate.

Presently, the gold price has reached $1,950, and the possibility of exceeding $2,000 in the short term is greatly increased. If the situation in the Middle East eases, gold will pull back, but the current market expects the situation to further escalate. I have a premonition that the market impact on the Palestinian-Israeli conflict will be much greater than that of Russia and Ukraine, as the situation has not yet experienced a substantial deterioration, and the market has already reacted in this way.

The 10-year US Treasury yield hit its highest level since 2007, closing at 4.9042%. This is an additional risk point for the market, as the rapid rise in bond yields has weakened the market’s enthusiasm for stocks. Once the 10-year US Treasury yield reaches “5%”, it may trigger a round of selling in the US stock market, which is a point that all Wall Street analysts are closely monitoring.

Crude oil rose due to the potential escalation of the Israeli-Palestinian conflict that could disrupt supply. After Iran called for an oil embargo on Israel, WTI crude oil prices briefly reached the $90 mark, closing 0.54% higher at $88.14 per barrel; Brent crude oil approached $93 in trading, closing up 0.47% at $91.3 per barrel.

The three major US stock indices collectively closed lower, with the Dow Jones Industrial Average closing down 0.98%, the Nasdaq closing down 1.62%, and the S&P 500 Index closing down 1.34%. Nvidia closed down nearly 4% and fell 8% this week.

Federal Reserve Update: Federal Reserve Governor Waller hinted support for staying put; Brown Book: Since September, economic activity has remained almost unchanged, and overall prices have continued to rise moderately; Williams: Interest rates need to remain high for a period of time to curb inflation; Huck believes that the Federal Reserve should extend the pause period for interest rate hikes.

The latest study by the New York Fed shows that due to lower interest rates and loan extension plans during the pandemic, the foundation of American consumers is more stable. However, over time, some families may face greater pressure as student loan repayments are recovering and interest rates are also rising.