Crypto Week: BTC Upside Potential is Limited

American crypto exchange Coinbase is preparing for the court trial with the Exchange and Securities Commission (SEC). The watchdog has issued a warning to Coinbase on potential enforcement action. This action may potentially refer to any of Coinbase products. The exchange has presented several legal regulation plans concerning the industry to the SEC in the recent month, and also received two broker licenses to operate within the existing legal framework, but was simply ignored by the SEC with the potential lawsuit.

“We asked the SEC specifically to identify which assets on our platforms they believe may be securities, and they declined to do so,” Coinbase’s chief legal officer, Paul Grewal, said in a blog.

Most interesting is that the SEC is competing with the Commodity Futures Trading Commission (CFTC) for the legal regulation of the crypto industry. Sec considers crypto assets to be securities, while CFTC suggests that they are commodities. Nasdaq may have something to say when it comes to this regulatory dispute as the exchange is planning to launch a custodian service for digital assets like BTC and ETH. The exchange tycoon could have strong ability to push through its initiatives. So, the crypto community may receive some certainty in regulation aspects.

Statista reported that over 156 million or 11% of the population in India, are expected to own cryptocurrency. Most of the holders will be educated young people who earn middle-sized income between the ages of 18 and 40. Such kinds of news appears regularly when the market is moving and bulls are trying to squeeze out more profit. Thus, such reports saying that cryptocurrencies will soon become mainstream and will be a safe haven alternative for large financial institution, are of minor interest.

Fundaments of the crypto market remain the same. Despite the turbulence in the banking sector the Federal Reserve (Fed) continues to raise interest rates in order to tackle inflation. So, Dollar funding remains expensive, and market activity of institutions muted. The Eurozone banks have decreased landing by three billion Euros amid raising interest rates and deposit outflows of 71 billion Euros. No wonder Credit Suisse and Deutsche Bank stories may continue to appear. Investors have no reasons to go into crypto assets during such a turbulent environment.

Long operations for BTCUSD are seen to be very risky at the moment as prices hit a strong resistance at $28,500 per coin. Technically, it would be hard to break this glass ceiling. If this is true ,prices may roll back towards $20,200 per coin.