Bitcoin (BTC) registered a substantial rally on Wednesday after the Federal Reserve kept interest rates steady between 4.25% and 4.50%. The flagship cryptocurrency surged over 5%, surpassing key moving averages and $85,000 to reach an intraday high of $87,038. The Securities and Exchange Commission’s announcement that Proof-of-Work mining rewards are not securities could further boost investor confidence in BTC . Despite Wednesday’s rally, BTC is down nearly 3% over the past 24 hours, trading just under $84,000. SEC Confirms Crypto Mining Does Not Violate Securities Law The United States Securities and Exchange Commission (SEC) has said that Proof-of-Work mining rewards are not securities. According to the regulator, both solo mining and mining pools do not fall under US securities laws because they do not require the efforts of a central entity to generate profits. The announcement gives Bitcoin and other Proof-of-Work cryptocurrencies regulatory clarity, reduces legal risks, and boosts investor and miner confidence. It also reinforces commodity status for the assets in question, potentially driving market growth and price. “JUST IN: SEC confirms Bitcoin & crypto mining does not violate securities laws.” Securing crypto networks has been controversial, with the SEC under the Biden administration stating that Proof-of-Stake blockchains like Ethereum and Solana could satisfy the Howey Test. An asset passes the Howey Test and meets the definition of a security if it is an investment of money in a common enterprise from which there is an expectation of profit. However, cryptocurrencies like Bitcoin, Litecoin, and Dogecoin function on Proof-of-Work blockchains that require computers around the world to solve complex mathematical problems to process transactions and add them to the blockchain. These miners are rewarded with digital tokens, prompting the SEC to investigate if it constitutes dealing with securities. The regulator stated that a miner's expectation to receive rewards is not derived from any third party’s entrepreneurial efforts on which the network’s success depends. “By adding its computational resources to the network, the miner merely is engaging in an administrative or ministerial activity to secure the network, validate transactions and add new blocks, and receive rewards.” Metaplanet Names Eric Trump As Advisor Japanese Bitcoin investment company Metaplanet has named Eric Trump to a newly formed strategic board of advisors. The board consists of members committed to furthering the Bitcoin mission and advancing financial innovation. According to a statement by Metaplanet, Eric Trump, the son of President Donald Trump, is a leading voice and advocate of digital asset adoption. Metaplanet trades on the Standard section of the Tokyo Stock Exchange, was previously known as Red Planet Japan, and primarily focused on regional hotel operations. Lazarus Group Holds More Bitcoin Than Tesla The dreaded North Korean hacker group Lazarus owns more Bitcoin than Elon Musk’s Tesla, the leading electric car manufacturer. According to Arkham Intelligence, Lazarus holds 13,441 BTC worth $1.4 billion, significantly more than Tesla’s 11,509 BTC . The group was responsible for the Bybit hack, draining over $1.4 billion from the platform and converting the stolen stash into Bitcoin, as confirmed by Bybit CEO Ben Zhou. On the other hand, Tesla acquired its Bitcoin stash over four years ago and is the world’s fourth-largest publicly listed company in BTC holdings. Bitcoin Bulls Not Seeing The Full Picture CryptoQuant founder and CEO Ki Young Ju has said Bitcoin bulls who believe the Bitcoin bull cycle is yet to peak may be using an outdated playbook. According to Ju, those tracking retail movements using only on-chain metrics are not seeing the complete picture. Ju stated in a post on X, “The idea that the cycle isn’t over just because on-chain retail activity is absent needs reconsideration. Retail is likely entering through ETFs — the paper Bitcoin layer — which doesn’t show up on chain. This keeps the realized cap lower than if the funds were flowing directly to exchange deposit wallets.” Ju noted that 80% of spot Bitcoin ETF inflows came from retail investors. Ju made the comments in response to comments on his earlier prediction about the Bitcoin bull cycle being over. “I’ve been calling for a bull market over the past two years, even when indicators were borderline. Sorry to change my view, but it now looks pretty clear that we’re entering a bear market.” Bitcoin (BTC) Price Analysis BTC registered a sharp decline last Tuesday, falling to a low of $76,642 before rebounding to reclaim $80,000 and settle at $82,843. Buyers retained control on Wednesday as the price rose almost 1% and settled at $83,709, despite considerable selling pressure. Buyers lost momentum on Thursday as BTC fell over 3%, falling to a low of $79,995 before settling at $81,136. Bullish sentiment returned on Friday as markets rallied. As a result, BTC surged past the 200-day SMA and reached an intraday high of $85,263 before settling at $84,002, ultimately registering an increase of almost 4%. Buyers retained control on Saturday as BTC registered a marginal increase and settled at $84,398. However, BTC fell back in the red on Sunday as buyers lost momentum, slipping below the 200-day SMA and settling at $$82,611. Source: TradingView The current week started with the price rising almost 2% and settling at $84,016. Selling pressure increased on Tuesday as BTC fell to an intraday low of $81,187. The price recovered from this level and settled at $82,725, ultimately registering an increase of almost 2%. Markets rallied on Wednesday following the FOMC meeting. As a result, BTC surged over 5%, going past the 20 and 200-day SMAs and $85,000, reaching an intraday high of $87,038 before settling at $86,875. However, buyers lost momentum on Thursday as selling pressure returned and BTC dropped over 3%, slipping below the 20 and 200-day SMAs and settling at $84,215. The current session sees BTC marginally down as buyers and sellers struggle to establish control. If sellers retain control, BTC could drop to $80,000. A break below this level could see the flagship cryptocurrency fall to $76,000. On the other hand, buyers will look to regain control and push back above $85,000 and the moving averages. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
