Daily News | Bitcoin Loses Steam, Coinbase vs. SEC; First Republic Bank's Troubles

2023-04-27, 01:54

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## Crypto Daily Digest: <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Falls After Briefly Surging Above $30,000, Coinbase Takes Action Against SEC; Investors on Edge as Analysts Watch for Potential Turning Point

Crypto markets experienced a sudden drop, with <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> briefly climbing back above $30,000 before retreating to around $28,350. Ether also experienced a similar decline from $1,963 to a low of $1,785 before settling around $1,862.

The volatility was fueled by various speculations, including a trading firm dumping <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, the US government selling the cryptocurrency, and tokens related to the Mt. Gox collapse being reintroduced into the market. Traders experienced $310 million in losses from liquidations, and crypto trading giant Jump Trading deposited $26.6 million of BTC to exchanges before prices fell, indicating an intention to sell.

In addition to the market turbulence, the US bank regulators are considering downgrading their private assessments of First Republic Bank, which may curb the troubled firm's access to Federal Reserve lending facilities. This development could potentially have ripple effects throughout the financial sector.

Despite the recent gains, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> has stalled since breaching $30,000 for the first time since June, and is still trading at less than half its record high of almost $69,000 reached in November 2021. Industry scandals and bankruptcies last year have made digital assets less appealing to many investors. The relative strength of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> tends to coincide with shifts in the S&P 500, rather than leading the moves in the equity market, according to Bespoke Investment Group.

Crypto-related stocks briefly benefitted from the short-lived rebound in <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, but it remains to be seen if this trend will continue.

Meanwhile, Coinbase has asked a US court to compel the Securities and Exchange Commission (SEC) to respond to a rulemaking petition the firm submitted last year. The petition called on the SEC to write regulations explaining how securities laws apply to cryptocurrency and to engage in a formal notice-and-comment process to allow the public to weigh in. The move comes as tensions between the SEC and Coinbase have been on the rise since the regulator gave the company a heads-up last month that it intends to bring an enforcement action against it. Coinbase argues that the SEC has not been prompt or reasonable in its response to the petition.

As for the future of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and other cryptocurrencies, some analysts are watching the $27,500 level closely as a potential turning point. <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> has gained about 74% this year but its future is uncertain. The recent drop in value and continued regulatory uncertainty have left many investors unsure of what to do next.

## Ether (ETH) $1916 (+2.73%) - Neutral Outlook

![](https://gimg2.gateimg.com/image/article/1682560450Untitled0427 1.png)

![](https://gimg2.gateimg.com/image/article/1682560465Untitled0427 2.png)

Yesterday, we talked about the possibility of a bull trap, which would allow smart money to buy at a lower price, and today that has become a reality. The daily outlook remains unchanged, with the most recent doji candle indicating strong resistance to upward movement. This suggests that the "Path of Least Resistance" has not yet been established, and smart money is likely to continue lowering prices and triggering more stop-loss orders. On the 1-hour timeframe, it is anticipated that ETH will experience further declines after reaching the 1918-1935 range, with the same target of 1741-1680.

**Overview:**

- ***Closest hourly support zone: 1883 - 1865***
- ***Closest hourly resistance zone: 1928 - 1935***
- ***Key Level: 1918 (Monthly Close of Mar. 2021)***

<br> **Hourly Resistance zones**

1. 1928 - 1935
2. 1958 - 1967
3. 1980 - 2005

<br> **Hourly Support zones**

1. 1883 - 1865
2. 1828 - 1813
3. 1800 - 1785

## Macro: First Republic Bank Woes May Lead Fed to Adjust Rate Hike Pace

On Wednesday, US stock futures climbed higher, with the Nasdaq 100 futures gaining 0.5% and the S&P 500 futures adding 0.2%. This follows after-hours trading for Meta Platforms Inc., where its shares rose after beating analysts' revenue and guidance expectations for the quarter.

Despite better-than-expected earnings from technology companies, Asian stocks are expected to fall for a fifth day as concerns over US regional banks weigh on sentiment. Equity futures in Japan, Australia, and Hong Kong are all down.

The US Treasury 10-year yield rose by five basis points, while the two-year yield remained stable. This followed a wave of bond buying earlier in the week as investors sought safe havens amid concerns over US lenders.

The Federal Reserve may adjust the pace of interest rate increases due to potential curbs on borrowing from the Fed by First Republic Bank, which saw its shares fall almost 30% over concerns about its health. The US jobless claims and GDP data are both due to be released on Thursday, which will help to identify the health of the US economy before the Fed's preferred inflation gauge, the core PCE deflator, is due on Friday.

Evercore ISI’s head of central bank strategy Krishna Guha wrote in a note that "We cannot rule out the possibility developments around First Republic could unfold in a manner that would lead the FOMC to skip May, while signaling a hike in June."

In other markets, oil prices fell, and gold prices also slid.

<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.
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