- The SEC is once again fighting to regain a foothold in the crypto market.
- BTC’s uncertainty caused a shift to the side of caution.
What is Bitcoin [BTC] next move? This is a question on the minds of many BTC traders, especially given the slowdown we’ve seen in the price action recently. The stakes are particularly high given the latest developments regarding the SEC.
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There is now a high probability that we will see another major price move in BTC. On the bullish side, we have potential Spot ETF approvals that could push prices up again.
The SEC, on the other hand, could contribute to another major sell-off. This is because the US regulator is reportedly appealing the recent Ripple ruling.
#XRPCommunity #XRP In the SEC v. Terraform Labs/Do Kwon case, the SEC filed a plea addressing Judge Torres’ decision in SEC v. Ripple, stating that “SEC personnel are considering the various avenues available for further review and intend to recommend to the SEC…
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) July 21, 2023
According to recent reports, the SEC is seeking a review based on rulings in the Terra lawsuit. In other words, there is a good chance that the SEC’s request will be approved.
Such an outcome, as well as an adverse legal outcome for the crypto market, could push prices down 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 have recently seen significant whale outflows. This could indicate that the potential price impact in case of negative news is cushioned to some extent.
Selling pressure may already be easing. A recent Glassnode alert revealed that Bitcoin exchange deposits have now fallen to a 3-year low. While this may confirm a decrease in selling pressure, it could also simply be a pause. An unfavorable outcome can lead to more sales pressure.
📉 #Bitcoin $BTC The number of foreign exchange deposits (7d MA) has just reached a 3-year low of 1,859,440
The previous 3-year low of 1,860,750 was observed on May 18, 2023
View statistics:https://t.co/v3uKq4dCjX pic.twitter.com/AUhYqb0ez0
— glassnode alerts (@glassnodealerts) July 21, 2023
We’ve previously explored how more selling pressure could potentially push prices below $28,000. Bitcoin should crash by just 6.2% from the $28,894 price level at a time.
The same price represented a 6% dip from its current monthly high, confirming that speculation was moving to the bearish side.
Bitcoin traders are undoubtedly in a phase of heightened uncertainty. The aforementioned lower exchange rates warrant a look at the other side of the coin.
How much are 1,10,100 BTC worth today?
As it turns out, BTC flows from exchanges have also been affected. BTC exchange outflows have fallen to a 2-month low.
Source: CryptoQuant
The above findings confirm that it is still difficult to determine which way the market will go based on on-chain data. That is, the next big Bitcoin price move will likely be driven by heavy news, such as regulatory-related or Spot ETF-related news.