All articles tagged with #market structure
With the opening Senate vote on the Digital Asset Market Clarity Act looming, Democrats and Republicans remain far apart as last-minute counteroffers fail to move the needle, making passage unlikely this session and keeping crypto regulation in flux.
The SEC proposed rescinding Rules 611 (trade-through prohibition) and 610(e) (locking/crossing restrictions) of Regulation NMS, along with related terms, to simplify market structure and lower costs, with a 60-day public comment period, and Chairman Atkins says the review aims to avoid past mistakes while encouraging competition and innovation.
The SEC Commissioner discusses the potential reconsideration of Rule 611, which governs order protection in U.S. equity markets, highlighting its historical context, current debates, and the need for comprehensive reform considering interconnected rules and market dynamics. The discussion emphasizes the importance of careful sequencing of rule changes and the evolving landscape of market trading, including off-exchange volumes and technological innovations.
The article discusses a significant shift in market dynamics from momentum-driven to a focus on fundamentals, emphasizing the importance of discipline, risk management, and preparation for the upcoming phase of market correction and opportunity, driven by tightening liquidity and structural risks.
Acting CFTC Chair Caroline Pham announced new leadership and members for the Global Markets Advisory Committee and its subcommittees, emphasizing the importance of expertise in digital assets and market structure to shape policy and regulatory clarity, with notable appointments including Scott Lucas of J.P. Morgan and Sandy Kaul of Franklin Templeton.
The U.S. Senate is advancing a major crypto bill, the Responsible Financial Innovation Act of 2025, which aims to clarify the regulation of digital assets, including a provision to prevent tokenized stocks and securities from being classified as commodities, with bipartisan support expected to push it toward final approval.
Crypto traders are optimistic about Bitcoin reaching $130,000, driven by a broader market rally in major cryptocurrencies like ETH, XRP, DOGE, and Solana, supported by institutional interest and evolving market structures, though some caution remains about resistance levels.
The U.S. House of Representatives is considering a landmark cryptocurrency bill, potentially voting as soon as July 7, which includes new rules for stablecoins and broader market oversight, amid ongoing debates over bill content and timing.
Senate leaders released principles to guide comprehensive digital asset market legislation, emphasizing clear legal definitions, regulatory jurisdiction, modernization to foster innovation, consumer protection, targeted illicit finance measures, and responsible regulatory oversight to ensure the U.S. remains competitive in global financial markets.
Grayscale's report suggests that the 2024 Bitcoin halving will be different due to the impact of U.S. spot Bitcoin ETFs, which could counterbalance sell pressure from mining issuance. The report highlights historical price trends post-halving, cautioning that other cryptocurrencies like Litecoin have not seen similar appreciation. It also discusses miners' preparations for the halving's financial repercussions and the impact of Bitcoin ordinals inscriptions and ETF flows on market structure, noting that steady ETF inflows could counterbalance sell pressure. Grayscale's own GBTC saw significant outflows after its conversion into a spot Bitcoin ETF, with funds flowing into rival Bitcoin ETFs.
Hedge-fund manager David Einhorn argues that passive investing has fundamentally broken the markets, as it disregards value and focuses solely on price. This shift has led to the annihilation of the value industry, creating a vicious cycle where value stocks fall further due to redemptions. Einhorn explains that the rise of passive investing has led to a market structure where overvalued assets receive disproportionate attention, making it challenging for active managers to thrive. As a result, Greenlight Capital has made significant changes to adapt to this shift, focusing on companies with low valuations and unlevered balance sheets.
BitGo CEO, Mike Belshe, believes that the approval of a Bitcoin ETF by the U.S. SEC is imminent, but warns of potential setbacks. Belshe stated that the market structure needs improvement before the SEC grants ultimate approval, and expects more rejections before positive news. He emphasized the need to separate crypto exchanges from custodians, referencing Sam Bankman-Fried's efforts to address regulatory concerns. The excitement surrounding a potential Bitcoin ETF approval has led to a surge in fees on the Bitcoin blockchain. Currently, 12 asset management firms are awaiting outcomes for Bitcoin ETF applications, with a 90% chance of approvals by January 10, 2024.
Bitcoin's price has dropped to two-day lows of $27,533, with traders flagging important support and resistance levels going forward. Crypto Tony highlights $27,700 as the equilibrium level and key support that bulls should preserve, while Filbfilb believes Bitcoin's 200-week moving average near $25,500 will be front run next. Credible Crypto cautions followers on staying bullish at nine-month highs, with downside targets coming in the form of $22,000-$23,000. On the other hand, Tedtalksmacro offers a more optimistic angle, arguing that Bitcoin has "truly shifted" its structure to produce a clean break with the bear market in place since its latest all-time highs in November 2021.
A trader with a large following on Twitter believes that Bitcoin's current market structure looks similar to its price action in the second half of 2020 before it broke the $20,000 level. The trader says that BTC bulls have the upper hand as long as Bitcoin trades above support at $27,000. Although the trader is bullish on BTC, he advises traders to be patient and wait for more signals. BTC continues to trade within a narrow range between $27,000 and $28,868, and a break of either the low or the high of the range could determine BTC's next move.