Daily News | BTC Surges on BlackRock ETF Filing, Crypto Market Rebounds; US-China Relations Fuel Volatility, Investors Monitor Central Banks

2023-06-19, 01:26

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## Crypto Daily Digest: Bitcoin Surges as BlackRock Files for ETF, Crypto Market Rebounds

The price of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> soared, crossing the $26,300 mark, in response to BlackRock's filing for a spot bitcoin ETF. This surge came after bitcoin had recently hit a three-month low. Ether, the second-largest cryptocurrency, also experienced a notable price increase, reaching $1,720. Other major cryptocurrencies, which had previously faced regulatory scrutiny from the SEC, saw a recovery in their prices. The overall cryptocurrency market cap. experienced a 4% increase, though concerns over U.S. regulation, inflation, and monetary policy persisted. Bitcoin and <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> continued to show negative correlations with traditional finance, disconnecting from major stock indexes like the S&P 500, Nasdaq, and Dow Jones Industrial Average.

In a separate development, recent documents obtained by CoinDesk shed light on <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a>'s financial operations and the assets backing its stablecoin. Tether held its funds in various institutions, including gold depositories and its sister company Bitfinex, alongside investments in commercial paper and securities issued by major Chinese banks and financial institutions. While these documents provide insight, they neither confirm nor refute previous claims regarding Tether's full backing.

In the legal arena, a temporary agreement has been approved by a federal judge between the SEC, Binance, and its U.S. affiliate, Binance.US. This agreement requires Binance.US to implement measures ensuring that only local employees can access customer funds temporarily. The parties will propose timelines for the broader lawsuit. The aim of this deal is to address the SEC's concerns without delving into the broader allegations.

Amidst these developments, in a fireside chat between the SEC and Coinbase, the challenges of the crypto-regulatory dialogue were highlighted. The SEC emphasized the need for compliance within the crypto industry, while Coinbase raised concerns about the SEC interfering with an ongoing legislative process and stressed the importance of adopting a future-oriented approach to crypto regulation.

In Hong Kong, regulators are organizing a meeting to encourage banks to offer services to virtual-asset firms, aiming to address challenges faced by crypto companies in opening bank accounts. Stringent regulations have made it difficult for these firms to access banking services. Despite recent industry turmoil, Hong Kong remains committed to becoming a global crypto hub.

These recent developments reflect the evolving landscape of the cryptocurrency market, with the filing for a bitcoin ETF, Tether's financial operations, legal proceedings involving Binance, and discussions between the SEC and Coinbase all contribute to the ongoing narrative of cryptocurrency's maturation within the global financial landscape.

## Bitcoin (BTC) $26,366 (+0.1%) - Neutral Outlook

![](https://gimg2.gateimg.com/image/article/1687137886Untitled0619 1.png)

**Overview:**

- ***Closest daily support zone: 26280 - 25818***
- ***Closest daily resistance zone: 26700 - 27150***
- ***Key Level: 27150 (Daily Ice Zone)***

<br> **Daily Resistance zones**

1. 26700 - 27150
2. 27790 - 28420
3. 29095 - 29300

<br> **Daily Support zones**

1. 26280 - 25818
2. 25240 - 24820
3. 24270 - 23855

## Macro: US-China Relations Drive Equity Futures Swing; Investors Anticipate Support for Chinese Economy

US equity futures experienced volatility as investors reacted to news of improving US-China relations and potential stimulus measures in China. Contracts for the S&P 500 and Nasdaq 100 initially rose before stabilizing. Talks between US Secretary of State Anthony Blinken and China Foreign Minister Qin Gang were described as "candid," and President Joe Biden expressed a desire to meet Chinese President Xi Jinping in the coming months. Meanwhile, Australian and Japanese shares remained steady, while futures contracts for Hong Kong stocks dipped slightly. In currency markets, the offshore yuan and Australian dollar weakened, while the yen remained stable.

Investors are closely monitoring for indications of further support for the Chinese economy, including expected rate cuts and potential stimulus measures. Hedge funds have reportedly increased their short positions on the Australian dollar, while Australian bond yields fell slightly and New Zealand yields rose. US markets were closed for the Juneteenth holiday, but market attention remains focused on Federal Reserve Chair Jerome Powell's upcoming report to Congress and speeches by other Fed officials.

The recent decision by the Federal Reserve to pause interest rate hikes provided relief for consumers facing increasing borrowing costs. However, investors are now evaluating the implications for the market. Historical data suggests that if the central bank extends the pause before resuming rate hikes, it could have a positive impact on stocks. In previous instances where the Fed paused after significant rate increases, the S&P 500 Index experienced an average 8.2% jump in the following 90 days, outperforming its average three-month advance during that period.

However, this time the pause comes with the expectation of further rate increases, creating a different scenario. Nevertheless, investors remain optimistic, as evidenced by the S&P 500's longest winning streak since 2021. The market's response will depend on whether the Fed's pause is perceived as a temporary break or a more permanent shift in policy.

Looking ahead, investors are also keeping an eye on central bank meetings in Turkey, the UK, and Switzerland in the coming week. These meetings, along with the Fed's report to Congress and speeches by Fed officials, will provide further insights into global monetary policy and potentially impact market sentiment.

<div class="blog-details-info">
<div>Author:** Peter L. **, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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