FX168 Financial News Agency (Asia Pacific) reported that on Tuesday (September 24), Bitcoin fell from its high of $64,741 at the beginning of the week to a low of $62,730. The shocking drop was caused by the new withdrawal policy introduced by BlackRock, the $10 trillion asset management giant on Wall Street, which caused panic among traders.
Source: FX168
BlackRock has submitted a modification request to the U.S. Securities and Exchange Commission (SEC), requiring Coinbase, the largest cryptocurrency exchange in the United States, to process Bitcoin withdrawals within 12 hours.
Source: SEC
According to the document: "Coinbase Custody shall withdraw digital assets from the custody account to a public blockchain address within 12 hours of receiving instructions from the client or the client's authorized representative."
Read more: BlackRock’s Bitcoin ETF Under Scrutiny for Collateral and Coinbase Practices
The revision was issued following rumors that Coinbase acquired paper Bitcoin or Bitcoin debt informal documents (IOUs). However, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, refuted speculation that Bitcoin price movements were affected by the US Bitcoin spot ETF market.
He explained: "BlackRock runs its own blockchain node, and every night they extract Bitcoin balances from wallet addresses on Coinbase Prime to verify Bitcoin held by its Bitcoin Spot ETF (IBIT). They show this information to institutional clients upon request. Just know that this is not amateur hour, BlackRock has about 500 ETFs that store assets with custodians and has been doing so for decades without any problems. This is why they and other ETF issuers are so trusted by US advisors, who know their clients will not be attacked by Sam Bankman-Fried (SBF), founder of the bankrupt cryptocurrency exchange FTX."
Balchunas added: “Isn’t it enough that (BlackRock) has a flawless 30-year record? The ETF is very clean.”
Nonetheless, Bitcoin closed lower on Monday’s session amid ongoing discussions about Coinbase and paper Bitcoin. Notably, BlackRock IBIT saw only $6.7 million in net inflows in September, while the ARK 21Shares Bitcoin Spot ETF (ARKB) reported net inflows of $144.2 million.
This week has been a slow start for U.S. Bitcoin spot ETFs. On Monday, Grayscale Bitcoin Spot ETF (GBTC) saw net outflows of $40.3 million, exceeding last week’s total net outflows of $28.9 million, according to Farside Investors. Fidelity Bitcoin Spot ETF (FBTC) saw net outflows of $24.9 million.
Excluding BlackRock IBIT, the total U.S. Bitcoin spot ETF market saw net outflows of $7 million on Monday.
Despite positive U.S. economic data, inflows across issuers in the U.S. Bitcoin spot ETF market fell sharply, with eight of the 10 issuers (excluding IBIT) seeing zero net inflows.
The S&P Global Services PMI in the United States fell from 55.7 in August to 55.4 in September, indicating a strong performance in the services sector. It is worth noting that the services sector accounts for nearly 80% of the US economy.
On Tuesday, the SEC will face strict scrutiny, with all five members of the regulatory agency testifying before the US House Financial Services Committee.
U.S. Vice President and Democratic presidential candidate Kamala Harris recently expressed support for digital assets, and lawmakers may use this to assess whether the SEC and its chairman Gary Gensler have changed their stance on digital assets. Taking a less aggressive stance on cryptocurrencies may indicate that the SEC will change its regulatory approach to digital assets, thereby supporting demand for Bitcoin.
Investors should also pay attention to the US economic calendar on Tuesday, as US consumer confidence data may affect demand for US Bitcoin spot ETFs.
Economists predict that the CB Consumer Confidence Index will rise from 103.3 in August to 103.8 in September. The rebound in consumer confidence could signal increased consumer spending, supporting the U.S. economy, which contributes more than 60% to gross domestic product (GDP).
Investors should remain vigilant as upcoming U.S. economic indicators and congressional hearings could affect buyer demand for Bitcoin and the broader market.
Read more: Sweden Classifies Crypto Exchanges as Professional Money Launderers
FXEmpire analyst Bob Mason said Bitcoin is hovering above the 50-day and 200-day EMAs, confirming a bullish price signal.
A break above the $64,000 resistance level would support gold prices to $67,500. If gold prices revisit $67,500, they are expected to break through the $69,000 resistance level.
Conversely, a break below $62,500 could signal a drop to the 50-day EMA and $60,365 support levels. Buying pressure could increase at the $60,365 support level.
The 50-day EMA is converging with the support level.
With a 14-day RSI reading of 60.18, Bitcoin could rally back to $65,000 before entering overbought territory.
Source: FXEmpire
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