Bitcoin and Ethereum to dump ‘toothless adversary’ SEC as FOMC looms

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Bitcoin (BTC) and Ether (ETH) are driven by volatility, but not thanks to toothless US regulators, according to new analysis.

In its latest market update on June 9, trading firm QCP Capital told market participants to prepare for macro-fed price action for BTC and ETH.

Related: Why is Bitcoin price stuck?

QCP Capital: US Crypto Mudslinging Will Continue

The dust continues to settle on this week’s major lawsuits against the Binance and Coinbase exchanges from the United States Securities and Exchange Commission (SEC).

More upheavals will occur in the future, QCP believes, as the macroeconomic environment from next week will become much more unpredictable.

The SEC and Chairman Gary Gensler, however, even if they continue to attack crypto, will not trigger the massive price depreciation that some fear.

Once again, Gensler and his SEC cronies have laid down their threat on the stocks of their favorite industry. However, as we have argued before, BTC/ETH will continue to treat the SEC as a toothless adversary, especially as it becomes abundantly clear that the term security will not apply either, he writes.

As more and more such outlandish SEC complaints are filed, it becomes increasingly clear that all they are looking for are sensational headlines leading to a bold final settlement. After all, Gensler turned out to be the most capitalist of all previous regulators.

What could put the spade among the pigeons, warns QCP, is the US Department of Justice or other branches of the establishment.

And if one of them gets involved, then the matter becomes more serious and all bets are off, he continued.

Nonetheless, we expect more bashing from the Biden administration to continue on crypto, and even escalate into election season next year.

The days following the lawsuits have so far seen crypto market sentiment resist the pressure, with the Crypto Fear & Greed Index remaining anchored in 50/100 “neutral” territory.

Crypto Fear & Greed Index (screenshot). Source: Alternative.meBitcoin price consolidates in ‘action-packed’ week

Beyond this SEC itself, meanwhile, next week’s macro data reports could provide their own trigger.

Related: Bitcoin Price May Gain 60% If Textbooks Chart Pattern Confirms Trader

The Consumer Price Index (CPI) printout for May is due on June 13, along with a policy update from the Federal Reserve, which will decide the next step for interest rates. reference.

Heading into next week, we’ll also have an action-packed macro week with the US CPI, June FOMC (including the Fed’s quarterly rate projections) and other important meetings of the central bank, QCP noted.

The analysis also flagged changes to the general Treasury account, which could suck liquidity from the monetary system and, in doing so, present a potential headwind for risky assets across the board.

This theory is on the radar of other well-known crypto figures, including former BitMEX CEO Arthur Hayes, who has been watching it since early 2023.

QCP’s bullish outlook comes as BTC/USD continues to tread water near key price support levels, with the 200-week EMA in particular.

BTC/USD was trading at around $26,600 on Bitstamp at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.

BTC/USD 1 hour candle chart on Bitstamp. Source: Trading View

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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