Crypto rockets higher in latest blow to SEC

Today we’ll cover:

• Grayscale becomes Greenshoots
• Crypto rockets higher in latest blow to SEC
• US jobs data falls sharply
• Month end risk rally or start of something more?

Yesterday saw the court decision rule that the SEC must reconsider its rejection of the Grayscale Bitcoin ETF. This saw BTC lead the charge higher moving from sub 26,000 to briefly trade above 28,000 in a combination of short covering and fast money buying. The rest of the Crypto sphere joined the party and it was hard to find a token that did not rally 4% or more. Chart of the day below shows the BTC price now and highlights the plethora of resistance between 28,000 and 28,500.

So where from here?

Well the SEC has 45 days to appeal the court ruling and much like it did with the Ripple decision we should brace ourselves that it may well do. The reaction to the previous appeal saw XRP give back almost all its gains, but I sense it could be different this time. The tide is turning against the SEC and its crusade against the future of money, and I suspect we are forming a base to build upon. The SEC can only take so many losses and the pressure building there will not relent. A close above 28,000/28,500 will really open up the topside.

Elsewhere the market was trying to rally following Powell’s speech on Friday at Jackson Hole. He struck a tone of higher rates for longer without committing to any more hikes. Future meetings will be data dependent and “live” decisions. What the market needed was weak data, and boy did it get it yesterday. The JOLTS jobs data was the worst in many years and showed real stress in the jobs market at last. The USD took a small battering and stocks rallied 2 percent. All eyes will now switch to payrolls data on Friday and weakness here will likely confirm a top in rates and a base in bonds.

BTC/USD below 28,000/28,500 holds the key. For now, respect it…

Good luck as always

Rich

Richard Usher
Head of OTC Trading