Bitcoin Battles Resistance as SEC Approves BTC, ETH ETF

Crypto Market Update: BTC, Inflation Data, SEC, and More

The crypto market experienced a mix of developments today, with Bitcoin (BTC) facing resistance challenges while institutional adoption grows. Meanwhile, the U.S. Securities and Exchange Commission (SEC) approved a Bitcoin and Ethereum ETF, and inflation data showed a rise in PCE inflation to 2.6%.

Bitcoin Faces Resistance Challenges Amid Mixed Investor Sentiment

Bitcoin (BTC) is facing resistance at the $109,588 level despite significant institutional interest. Retail investors have been taking profits, influencing market dynamics as February begins. The 20-day exponential moving average (EMA) is providing support at $102,198, and the relative strength index (RSI) remains in positive territory, suggesting a prevailing bullish sentiment.

Institutional Adoption Grows Despite Retail Profit-Taking

The robust inflow into Bitcoin ETFs highlights a shift in market dynamics, with institutional investors increasingly embracing cryptocurrency as a viable asset class. This trend supports the bullish outlook, particularly as Bitcoin approaches its all-time high. However, this enthusiasm contrasts sharply with retail investor behavior, as evidenced by the reported outflows of 6,000 BTC to exchanges like Binance, indicating profit-taking amidst the upward rally.

SEC Approves Bitcoin and Ethereum ETF

The U.S. Securities and Exchange Commission (SEC) approved NYSE’s proposal to list and trade shares of Bitwise’s Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund (ETF) on an accelerated basis. The regulator found that the proposal bears similarities to spot Bitcoin and Ethereum ETP proposals greenlighted in the past. The Bitwise dual Bitcoin-Ethereum ETF will calculate the market cap of the two assets by multiplying the pricing benchmarks by their current circulating supplies.

Inflation Data Shows PCE Inflation Rise to 2.6%

The Bureau of Economic Analysis reported that the headline US PCE inflation has increased for the third month to 2.6%. Core PCE inflation in the U.S. held steady at 2.8% in December, the same as November. Stocks and Bitcoin are seeing gains as analysts and investors anticipate further growth in the coming months.