- The SEC is once again fighting to get its foot back in the crypto market.
- BTC’s uncertainty saw a shift to the side of caution.
What is Bitcoin’s [BTC] next move? This is a question on many BTC traders’ minds, especially considering the slowdown we have observed in its price action recently. The stakes are particularly high considering the latest developments involving the SEC.
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There is now a significant chance that we may see another major price move in BTC. On the bullish side, we have potential Spot ETF approvals which could send prices soaring once again.
The SEC, on the other hand, might contribute to another major selloff. This is because the U.S. regulator is reportedly appealing the recent Ripple ruling.
#XRPCommunity #XRP In the SEC v. Terraform Labs/Do Kwon case, the SEC has filed a pleading discussing Judge Torres’s decision in SEC v. Ripple in which it states that “SEC staff is considering the various available avenues for further review and intends to recommend that the SEC…
— James K. Filan
(@FilanLaw) July 21, 2023
According to recent reports, the SEC is seeking a review based on rulings made in the Terra lawsuit. In other words, there is a considerable chance that the SEC’s request might be approved.
Such an outcome, as well as an unfavorable judicial outcome for the crypto market, could send prices tumbling once again.
Are regulatory concerns priced in?
The prevailing uncertainty may explain Bitcoin’s recent consolidation. The SEC situation has already caused some price weakness and we recently observed significant outflows from whales. This may suggest that the potential price impact in case of negative news might be somewhat cushioned.
Sell pressure may already be slowing down. A recent Glassnode alert revealed that Bitcoin exchange deposits have now dipped to a 3-year low. Although this may confirm a drop in sell pressure, it could just be a pause. More sell pressure could occur in case of an unfavorable outcome.
#Bitcoin $BTC Number of Exchange Deposits (7d MA) just reached a 3-year low of 1,859.440
Previous 3-year low of 1,860.750 was observed on 18 May 2023
View metric:https://t.co/v3uKq4dCjX pic.twitter.com/AUhYqb0ez0
— glassnode alerts (@glassnodealerts) July 21, 2023
We previously looked into how more sell pressure could possibly lead to sub $28,000 prices. Bitcoin would have to crash by just 6.2% from its $28,894 press-time price level.
The same price represented a 6% dip from its current monthly high, thus confirming that speculation has been leaning on the bearish side.
Bitcoin traders are undoubtedly in a phase of heightened uncertainty. The aforementioned lower exchange deposits warrant a look at the other side of the coin.
How much are 1,10,100 BTCs worth today?
It turns out that BTC flows out of exchanges have also been affected. BTC exchange outflows are down to a 2-month low.
Source: CryptoQuant
The above findings confirm that it is still difficult to determine which way the market will sway based on on-chain data. That is to say, the next major Bitcoin price move will likely be determined by weighty news such as regulatory-related or Spot ETF-related news.
