- Regulatory Focus: The U.S. Senate Finance Committee will discuss crypto tax matters next week, featuring a Coinbase executive and other specialists. Separately, executives from Kraken and Crypto.com will participate in an SEC-CFTC “harmonization” event, following recent policy changes affecting digital assets.
- Market Structure Debate: U.S. Senators are showing resistance to a market structure bill over concerns about “foreign crypto deals,” potentially leading to a tight vote.
- Bitcoin (BTC) Analysis: Bitcoin’s $22.6 billion monthly options expiry is bull-led, though macroeconomic factors could favor bears. Bullish divergences on the RSI metric and low volatility preceded a rally to $113.9K. Analysts anticipate strong selling pressure around $117,500.
- Ethereum (ETH) Outlook: An analyst maintains a $5K year-end target for ETH, noting institutional demand offsetting weak retail flows. ETH needs to reclaim $4,580 to trigger a breakout. Ethereum developers are targeting December for the Fusaka hard fork.
- Stablecoin Developments: A crypto executive emphasizes the need for consumer protections in stablecoins to challenge incumbents, citing demand for guarantees against fraud and disputes. Hyperliquid launched its USDH stablecoin after fierce bidding for issuance rights.
- Altcoin Movements: BNB Chain plans to reduce fees as Aster spurs on-chain exchange competition. HBAR experienced a sharp decline before a strong recovery. XLM is consolidating after a decline, testing key support. Polkadot (DOT) gained 2.1%
Analysis:
- Regulatory scrutiny and potential policy shifts remain a central theme, influencing both market structure and the adoption of digital assets like stablecoins.
- Bitcoin is showing signs of recovery, fueled by technical indicators and possible speculation around AI-driven energy demand for mining, but faces significant resistance levels.
- Ethereum’s growth relies on institutional investment and successful technical upgrades to maintain its upward trajectory.