Bitcoin Price Prediction: BTC at $40,100 Amid ETF Accumulation and SEC Decisions

Arslan Butt
Last updated: | 5 min read

In the dynamic world of cryptocurrency, Bitcoin’s price prediction remains a topic of keen interest. As of recent observations, Bitcoin is trading around $40,104, marking a decrease of 2.80%. This movement comes amidst significant events in the crypto space, including the involvement of major ETFs like Blackrock and Fidelity in Bitcoin accumulation, holding nearly $2.6 billion in BTC.

Concurrently, developments such as Congresswoman Maxine Waters’ concerns about Meta’s crypto pursuits and the majority sale of FTX estate’s Grayscale Bitcoin Trust shares add layers to the market’s complexity. Additionally, a recent legal decision to reject the SEC’s new discovery requests concerning XRP adds another dimension to the cryptocurrency narrative.

Waters’ Concerns Over Meta’s Crypto Moves


Rep. Maxine Waters, noting the company’s five active trademark filings pertaining to digital asset services and blockchain technology, has voiced worries over Meta’s (previously Facebook) continued efforts to enter the cryptocurrency space.

Waters drew attention to the disparity between Meta’s patent filings and its declaration to the Financial Services Committee that it had no active initiatives pertaining to digital assets, in a letter addressed to Meta’s COO Javier Olivan and CEO Mark Zuckerberg.

Growing regulatory apprehensions regarding Big Tech’s engagement in the digital assets space are reflected in this scrutiny. Although this revelation relates particularly to Meta’s activities, heightened regulatory scrutiny of large tech companies could exacerbate the general sense of caution in the cryptocurrency industry and so impact the price of BTC.

Blackrock and Fidelity Lead in Bitcoin Holdings


As of right moment, 33,430.56 bitcoins, worth about $1.34 billion, are held by BlackRock, the largest asset manager in the world with over $9 trillion in assets under management (AUM), according to the most recent data.

In a similar vein, Fidelity has added to its bitcoin holdings; as of right now, the Fidelity Wise Origin spot bitcoin exchange-traded fund (ETF) holds 30,169.54 bitcoins, or almost $1.26 billion. These purchases by significant financial institutions indicate that people’s trust and interest in Bitcoin are expanding.

The accumulation of substantial amounts of Bitcoin by these institutional actors could have a favorable effect on the general perception of the cryptocurrency, encouraging additional investors and institutions to think about adding to or boosting their exposure to it.

Sale of FTX’s Grayscale Bitcoin Trust Shares


According to sources cited by Bloomberg, the FTX estate, connected to the defunct cryptocurrency exchange FTX and hedge fund Alameda Research, allegedly sold more than two-thirds of its Grayscale Bitcoin Trust (GBTC) shares at the start of spot ETF trading, raising at least $600 million.

Before the trust was converted into a spot exchange-traded fund (ETF) on January 11, the estate owned 22.28 million GBTC shares, valued at $902 million. The large share sale by FTX, which occurred at the same time as Grayscale’s withdrawals and the drop in the price of BTC, might have put short-term selling pressure on Bitcoin prices.

Judge’s Decision on SEC’s XRP Discovery Requests


The U.S. SEC and Ripple Labs are engaged in a legal struggle that has taken a new turn as Ripple contests the SEC’s requests for post-complaint discovery pertaining to XRP. The SEC’s requests, according to Ripple, are “untimely” and without substance, and the information they seek is irrelevant to the court’s decision about the appropriate remedies.

This judicial development may add to the already high level of uncertainty in the bitcoin sector by highlighting the regulatory obstacles encountered by cryptocurrency initiatives.

The resolution of this legal issue could have a significant impact on how regulatory bodies handle other digital assets, which could affect the sentiment of the market as a whole, including that of Bitcoin. As such, traders and investors should keep a careful eye on the outcome.

Bitcoin Price Prediction

In the ever-evolving landscape of cryptocurrency, Bitcoin (BTC) continues to hold the spotlight. As of January 23, BTC/USD is trading around $39,958, marking a 1.09% increase over the past 24 hours.  This technical analysis delves into the intricate details of Bitcoin’s current market status, utilizing a 4-hour chart timeframe to provide a comprehensive and nuanced perspective. The focus here is not just on the current price but on the key price levels that could act as catalysts for Bitcoin’s next major move.

At present, Bitcoin’s pivot point stands at $40,632, a crucial juncture that could dictate its short-term trajectory. Resistance levels are observed at $41,784, $43,394, and $44,489, each representing potential ceilings that Bitcoin might struggle to break through. On the flip side, support levels at $39,414, $38,351, and $37,502 are equally vital, as they could provide a safety net for Bitcoin in the event of a downward trend.

Bitcoin Price Chart - Source: Tradingview
Bitcoin Price Chart – Source: Tradingview

The technical indicators for Bitcoin paint a picture of a market at a crossroads. The Relative Strength Index (RSI) stands at 30, indicating a potential oversold condition and hinting at the possibility of an upcoming reversal or bounce-back. The Moving Average Convergence Divergence (MACD) further adds to this narrative, although specific values and observations are not provided in this context.

The 50-Day Exponential Moving Average (EMA) is currently at $41,784, aligning closely with one of the identified resistance levels. This convergence of the EMA with key price points suggests a potential area of contention for Bitcoin’s price in the near future. In conclusion, the overall trend for Bitcoin appears bullish above the $40,630 level, but this is contingent on its ability to break free from the current downward channel.

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