BTC Bears to Target Sub-$29,000 on ETF Uncertainty and Fed Jitters

BTC Remained Stuck in a Rut on ETF and SEC Appeal Uncertainty

It was a quiet Sunday session. There were no crypto events to move the dial, leaving investors to consider the chances of the SEC approving one, some, or all of the Spot BTC ETF applications.

The crypto market was apprehensive after the SEC formally accepted the ETF applications last week, kickstarting the formal review process. Previously, the SEC has declined numerous spot BTC ETF applications, citing inadequate investor protection and anti-fraud mechanisms.

Regulatory uncertainty also remained a headwind as investors monitor SEC appeal-related chatter. After the news of the SEC planning to appeal the Judge Torres ruling on Programmatic Sales, investor hopes for new legislation to roll out an appropriate crypto regulatory framework waned, with Democratic lawmakers seemingly unwilling to support a regulatory framework.

Financial Innovation and Technology for the 21st Century Act, saying,

“Instead of focusing on pressing Farm Bill issues, House Republicans are sprinting to provide a handout to crypto exchanges, Wall Street, and Silicon Valley venture capitalists at the expense of American consumers and retail investors.”

Before the SEC v Ripple Court ruling, the US administration and the blue side of the aisle have been scathing about the digital asset space, with the collapse of FTX, Terra Labs, Celsius, and others leading to increasing scrutiny. However, the US administration remained silent on the Court ruling that could materially alter the US digital asset landscape.

The Day Ahead

It could be a busy day for BTC and the broader market. SEC v Ripple chatter, ETF updates, and Binance and Coinbase (COIN)-related news will need consideration.

Investors will also need to track the US economic calendar, with private sector PMIs in focus today. While investors have ignored recent US economic indicators, the Fed will deliver its pre-summer interest rate decision on Wednesday. Better-than-expected service PMI numbers could fuel bets on a more hawkish Fed, a bearish scenario for riskier assets.