Gold market

Gold Market

Gold slumps to multi-month lows below USD$1,860. Gold price currently trading at USD$1,863 (XAU/USD) has been dumped heavily by market participants as Federal Reserve (Fed) policymakers reiterate their hawkish stance on the interest rate outlook. After an explosive start to September, Gold prices have finally pulled back on routine end-of-quarter profit-taking as traders square up their positions – ready to capitalize on the precious metal’s next big move. Right now, gold prices are spending very little time below the key psychological level of USD$1900 an ounce, which ultimately suggests that there’s still plenty of upside ahead.

Crypto Markets

Bitcoin’s price is currently testing a key area above USD$26,500 and its reaction could determine the mid-term price action of the market. On the daily frame, the price has been testing a 50-day moving average, located around the USD$26500 level, over the last few days. In the event of a bullish breakout, Bitcoin is likely to move towards the USD$27,500 resistance level. On the other hand, a bearish rejection could lead to a drop to the USD$25K level potentially lower.

Ethereum Price skyrockets as Ethereum ETF eyes Monday launch Prospect. In the major development, the price of Ethereum experienced a substantial uptick today, marking a significant moment in its recent surge. Throughout this week, Ethereum has enjoyed remarkable gains, with its price surging 4.6% since the beginning of the week. The current rise has made this week the most profitable for the altcoin since July.

According to analysts at Bloomberg, Ethereum futures exchange-traded funds (ETFs) may be introduced as early as next week. Eric Balchunas, an ETF analyst at Bloomberg, mentioned that the Securities and Exchange Commission (SEC) has requested various applicants to update their documents by Friday. This update would allow them to start trading as early as Tuesday next week.

Regulation

The US Securities and Exchange Commission (SEC) announced it would delay the deadlines for decisions on VanEck’s and Ark 21Shares’ spot Ethereum ETF applications to December 25 and 26, 2023, respectively. In a filing, the SEC noted that it needs a longer period to consider the proposed rule change.

SEC Chair Gary Gensler reiterated that Bitcoin is not a security but a commodity under the Commodity Futures Trading Commission (CFTC) purview. He also stated that “everything else other than bitcoin is a security,” which has significant implications for regulating cryptocurrencies and digital assets in the United States. Gensler’s statement reflects the SEC’s long-held view that many cryptocurrencies and digital assets are securities under U.S. law. The SEC’s definition of security is broad — it includes any investment contract in which an individual invests money in a common enterprise with the expectation of profits solely from the efforts of others. In other words, if an asset is sold as an investment with the expectation of profit based on the efforts of others, it is likely to be considered a security.

Coinbase International Exchange has received regulatory approval from the Bermuda Monetary Authority (BMA) to enable perpetual futures for eligible non-US retail customers. The exchange would now be able to tap into the services that contribute to 75% of the global crypto trading volume. The exchange was Coinbase’s answer to the regulatory crackdown in the US after the SEC filed a lawsuit against it. Coinbase is emerging as the biggest entity to defy the enforcement actions pursued by the Securities and Exchange Commission (SEC) after successfully launching its international exchange in Bermuda in Q2 this year. The exchange is now expanding to meet the demands of its users by bringing derivatives services.