• Bitcoin appears unsusceptible to stock market turbulence

• Ethereum gains 4% on Thursday over futures ETF approval rumors

• Regulatory and macroeconomic backdrop to stay in the driver’s seat

Bitcoin steady despite stock market volatility

This has been a relatively volatile week for financial markets, with stock indices selling off before rebounding as investors are bracing for a protracted period of high interest rates. For reference, on Wednesday, the CBOE Volatility Index (VIX) climbed to its highest levels since May, reflecting increasing downside fears over risk-sensitive assets.

Normally, traders would expect the heightened volatility to spill over to the more immature cryptocurrency market and hurt digital assets, but this scenario did not materialise. Bitcoin and major altcoins have not only been relatively steady throughout the week but are also headed for a green weekly candlestick, albeit staying within their established short-term ranges.

Taking a step back, both stocks and cryptos are set to post their first quarterly loss in what so far has been a solid year. However, on a positive note, Bitcoin is ready to record its first positive September since 2016.

SEC delays applications as government shutdown looms

Once again, the United States Securities and Exchange Commission (SEC) deferred its decision regarding several proposals of spot-Bitcoin ETFs. The latest postponement has come earlier than markets expected and is linked to the imminent government shutdown in the case that Congress fails to reach an agreement over several funding bills.

Speculators are trying to take advantage of the potential risk episode, suggesting that we could see a crypto rally like the one observed during the US regional bank crisis in March. With Bitcoin struggling for direction in the past month such an event could theoretically trigger some volatility, but investors should make a clear distinction. In March, a domino of banking collapses was prevented by liquidity injections, but the current situation closely resembles the debt-ceiling crisis, which resulted in liquidity drainage.

Ethereum jumps on ETF approval rumors

Ethereum outperformed Bitcoin on Thursday, gaining around 4% on the back of a Bloomberg report stating that ETFs tracking Ethereum futures contracts could debut in the US as early as next week. According to the analysts, the SEC wants to give the green light before a potential government shutdown.

From a technical standpoint, ETHUSD advanced above its 50-day simple moving average (SMA) for the first time since July 31, but remains stuck in a rangebound pattern. Nevertheless, the completion of a death cross between the 50- and 200-day SMAs On September 1 could induce some downside pressures.

On the upside, further advances may come to a halt at the August resistance of $1,745 before the May-June hurdle of 1,928 gets tested.

Alternatively, bearish actions could send the price to test the recent six-month bottom of $1,531 ahead of the February lowof $1,462.