Price Analysis: BTC $111K, Grayscale ETCO & SEC Proposals

Published: 2025-09-05 13:55:02 |

Crypto price analysis: On Sept 5, Bitcoin (BTC) traded near $111,370, briefly touching $112,600 resistance before pulling back to $111K. Ether (ETH) fell 2% to $4,331 amid continued ETF outflows, while Solana (SOL) slid 1.3% to $204 despite optimism around the Alpenglow upgrade. Cardano (ADA) hovered around $0.82 and Optimism (OP) traded near $0.71. Broader altcoins including XRP, LINK, XLM, HBAR registered losses. In macro, US stocks opened flat after ADP reported only 54K private payrolls in August. Regulatory news saw Grayscale launch its Ethereum Covered Call ETF (ETCO) targeting income from ETH options, joining its Bitcoin covered call fund. Meanwhile, the SEC proposed around 20 rules introducing crypto safe harbors and broker-dealer reforms to clarify digital asset regulation. The SEC OIG found “avoidable errors” led to wiping former chair Gary Gensler’s text messages, potentially erasing key crypto enforcement records. Traders face market volatility with BTC key resistance at $112K and support at $110K. Analysts warn of a possible $100K retest, while others project a push to $115K. Ethereum’s recovery hinges on reclaiming $4,500. Grayscale’s ETCO ETF and SEC regulatory signals may influence trading strategies in both spot and derivatives markets.

Neutral

The market shows mixed signals: short-term weakness in Bitcoin, Ethereum and major altcoins amid profit-taking and ETF outflows, counterbalanced by bullish catalysts from Grayscale’s new ETCO ETF and SEC’s clearer safe-harbor proposals. Historically, ETF launches (e.g., spot Bitcoin ETFs in 2021) provided mid-term support but did not prevent initial volatility. The SEC’s regulatory clarity may reduce legal risk, attracting institutional flows over time. In the short term, traders should brace for sideways movement between established support and resistance. Over the long term, the combination of yield-oriented ETFs and regulatory frameworks could underpin a bullish case, keeping sentiment neutral until decisive price breaks emerge.