Profit taking drags Bitcoin down to the $44,000 area 📉

Bitcoin is trading down a modest 1.3% and retreating to $44,400 today. In the altcoin market, Stepn is losing the most heavily, with a nearly 12% sell-off. At the same time, the U.S. dollar continues its rise, which yesterday recorded its best session since March 2023, putting pressure on risky assets. The crypto market is awaiting the SEC's decision on ETF applications, after Reuters sources cited the current week as the likely time for the regulators' decision. So far, however, the agency has not provided any information, on the matter.

• The SEC has until January 10 to accept or reject ETF applications from Ark Invest and 21 Shares. The agency lost a case in a Washington court against Grayscale, a fund that has been waiting for years to convert a GBTC fund to a spot ETF
• The court stressed that the SEC should not delay in approving the transformation of Grayscale's application to an ETP fund 
• The SEC did not appeal the court's decision, which implies that the agency may reject Grayscale's application, but for a different reason than those indicated so far in the regulator's responses
• In the Grayscale case, the SEC indicated that the previously elected CME exchange could not share oversight of the Bitcoin fund because trading does not take place on it
• As a result, both Grayscale and the other 8 of all 14 institutions that submitted applications chose as 'custodian' the cryptocurrency exchange Coinbase, where Bitcoin trading takes place
• Shares of Coinbase (COIN.US) lost more than 10% yesterday despite Bitcoin's rally, fueling concerns around possible SEC comments regarding Coinbase's shared oversight with ETF issuers and failure to approve proposals. The SEC is still in a dispute with Coinbase over regulatory issues and the trading of digital assets on the cryptocurrency platform, which the agency views as securities.

Onchain activity of bitcoin addresses has declined dynamically since the first half of December, historically indicating a decline in the momentum of transactions made or periods of declining interest in cryptocurrency market. Source: XTB Research 

On the W1 interval, bitcoin broke out above the 2023 peak structure. Currently, the move is being tested by the sellers' side, and the cryptocurrency is back below the $44,000 barrier. Source: xStation