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News in the cryptocurrency space: Despite market headwinds, Bitcoin Cash SV has a strong week

Binance Launches a Bitcoin Cash SV Perpetual Futures Product

Bitcoin Cash SV (BSV) leads the top 100 by market cap this week. BSV was up 64% to $55.74, Monday through Sunday morning. The crypto market cap was up 7% to $1,115 billion.

The news of Binance launching BSV perpetual contracts fueled the breakout week, which included a 30% gain on Friday. According to the announcement, traders could start trading the USD (S)-M BSV Perpetual contract on October 20, with up to 50x leverage. Perpetual contracts are futures contracts with no expiry date.

BSVUSDT 221023 Daily Chart

The US Crypto Industry May Find Voice in the House

On Friday, House Majority Whip Tom Emmer, announced he is entering the race to become the Speaker of the House, saying,

“The American people elected us to deliver on a conservative agenda that secures our border, stops reckless spending, and holds Joe Biden accountable. We cannot afford to fail them. I’m running for Speaker of the House to bring our conference together and get back to work.”

Tom Emmer is a crypto advocate and may give the crypto industry more voice on Capitol Hill. Last month, Tom Emmer supported the passage of the CBDC Anti-Surveillance State Act. Emmer warned about Central Bank Digital Currencies (CBDCs) and their potential to impact the American way of life. Significantly, the Act would require Congress to authorize the issuance of CBDCs.

BTC-Spot ETF Optimism Lingers Despite Crypto Market Headwinds

BTC was up 10% to $29,953 Monday through Sunday morning. Market bets on the approval of BTC-spot ETFs and an influx of sticky institutional money could give BTC its best week since June 19.

The SEC decision not to appeal the Grayscale win and the BTC-spot ETF application refilings have fueled the optimism. The amended applications suggest ongoing dialogue with the SEC and progress toward meeting the SEC requirements for approval.

For the crypto market, the BTC and broader market gains came despite risk aversion. The Nasdaq Composite Index ended the week down 3.16%. 10-year US Treasury yields surged by 6.63% this week, with yields hitting a high of 5.001% before retreating. The Middle East conflict and Fed fear impacted market risk appetite.

Increased US lawmaker scrutiny is another headwind. The US Administration responded to a call for action in response to the Hamas attack on Israel. On Wednesday, the US Department of the Treasury issued a press release: Following Terrorist Attack on Israel, Treasury Sanctions Hamas Operatives and Financial Facilitators.

The press release discussed Hamas virtual currency fundraising and the seizure of virtual currency wallets.

The Treasury Department also shared an action plan to tackle the illicit financing risks of digital assets. Significantly, the action plan highlights the use of mixers that help make it challenging to trace crypto activity. Investors face the threat of the US government coming down heavy-handed on US exchanges that have facilitated the movement of illegal funds.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, reaffirming bullish price signals.

A BTC breakout from the $30,107 resistance level would give the bulls a run at the $31,143 resistance level.

US Administration scrutiny of the crypto space would test the buyer appetite for BTC. However, hopes of the SEC approving BTC-spot ETFs remain a tailwind.

A fall to $29,500 would bring the $29,193 support level into play.

The 14-Daily RSI reading of 73.01 shows BTC in overbought territory.

BTCUSD 221023 Daily Chart

Ethereum Analysis

ETH sat below the 50-day and 200-day EMAs, affirming bearish price signals. On Sunday, the 50-day EMA and the $1,626 resistance level rejected an ETH breakout to target $1,700.

An ETH breakout from the 50-day EMA and $1,626 resistance level would support a move to the 200-day EMA. Selling pressure will remain elevated at $1,626. The 50-day EMA is confluent with the $1,626 resistance level.

ETH-spot ETF-related news will also influence the buyer appetite for ETH.

However, an ETH fall below the $1,600 handle would bring the $1,502 support level into play.

The 14-Daily RSI reading of 54.59 suggests an ETH move to the 200-day EMA before entering overbought territory.

ETHUSD 221023 Daily Chart


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