According to Research, Grayscale’s Victory Didn’t Contribute to Bitcoin: Volume Still Very Low!

  • Grayscale’s favorable decision pushed BTC to $28,000, but the delay in the decision led to price retracement, erasing all gains.
  • When the SEC decision was announced, the BTC/USDT and BTC/TUSD pairs on Binance dropped by $100 million. The same happened on the Coinbase exchange. Despite Grayscale’s partial victory, Bitcoin’s volume didn’t increase significantly.
  • At the time of writing, the weighted sentiment, as shown by Santiment, had risen into the positive territory. Weighted sentiment reflects the unique social volume around an asset according to community perception.

Grayscale’s SEC victory led to an increase in volume for Bitcoin, but not as expected; What do investors think about BTC price now?

Grayscale’s Victory Didn’t Have the Expected Impact

Grayscale

Grayscale’s court victory heightened market volatility. For a while, Bitcoin, along with other cryptocurrencies, experienced a prolonged consolidation period with narrowing price ranges.

While Grayscale’s positive decision briefly pushed BTC to $28,000, the delay in the decision led to a price retracement, erasing all gains. Additionally, a report by Kaiko Research claimed that the initial decision affected Cumulative Volume Deltas (CVD).

BTC-CVD

CVD compares buying and selling volume while providing an overview of micro and macro price movements for an asset. The crypto market data provider also noted positive CVD turns on exchanges like Binance and Coinbase. The report stated:

“The initial court decision led to a buying frenzy in Binance’s BTC-USDT pair, as we can see from the cumulative volume delta (CVD), which showed +$50 million. The increase on Coinbase was more gradual, peaking at +$35 million about 12 hours after the decision.”

However, when the SEC decision was announced, the BTC/USDT and BTC/TUSD pairs on Binance dropped by $100 million. The same happened on the Coinbase exchange. Despite Grayscale’s partial victory, Bitcoin’s volume didn’t increase significantly. Kaiko mentioned the following regarding volume during that period:

“It’s a sign of just how muted trading volume has been over the past few months that the Grayscale decision could scarcely move the needle on BTC volume. On August 29th, BTC volume ranked just 504th of 973 days since the start of 2021.”

Quietness in the Market

Based on activity in the derivatives market, Kaiko noted a decrease in Open Interest between August 29th and 31st. Open Interest represents the value of open futures contracts at the end of a trading day.

An increase in Open Interest signifies increased contract liquidity. However, when it decreases, it implies that many contracts have been closed, indicating reduced liquidity and a lack of strength behind BTC’s movement.

BTC-perpetual-futures-oi

At the time of writing, Bitcoin’s funding rate was very low, at 0.002%. Previously, there had been fluctuations in the funding rate, indicating doubts surrounding BTC’s movement.

At the time of writing, the weighted sentiment, as shown by Santiment, had risen into the positive territory. Weighted sentiment reflects the unique social volume around an asset according to community perception.

bitcoin-weighted-sentiment

Therefore, the weighted sentiment, which was 0.477 at the time of writing, seems to indicate that the overall market believes Bitcoin could rise in the coming weeks.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin Price Surge Predicted: Analyst Sees BTC Hitting $650,000 Fueled by ETFs

Get the latest insights on Bitcoin's potential trajectory – could the dominant cryptocurrency surpass gold's market cap and reach new heights?

Bitcoin Halving to Spark Supply Shock, Says Samson Mow – Omega Time Ahead?

Influential Bitcoin advocate Samson Mow offers a bullish outlook on Bitcoin's future, citing the upcoming halving and growing ETF inflows as key drivers. Here's why he believes the current market turbulence could lead to a surge in BTC price.

Bitcoin Price Plunge Continues: Analysts Predict Further Drops to $59K

Bitcoin's rollercoaster ride continues, with experts weighing in on where the bottom might lie. Get the latest price analysis, predictions, and insights into what these movements could mean for your crypto portfolio.

Bitcoin and Altcoins Face Correction Risk as Rate Cut Expectations Decline

Discover why Bitcoin and other cryptocurrencies may be on shaky ground, as economic indicators point to a potential market correction. Get expert insights on shifting market dynamics and what it could mean for crypto investors.

Bitcoin Price Outlook Dims as Crypto Stocks Slump, Peter Schiff Raises Doubts

Get the latest insights on the bearish trend in crypto markets, Peter Schiff's skepticism, and the impact on Bitcoin's price potential.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Will WLD See $11 Again? Current WLD Analysis

WLD coin's daily technical analysis provides direction for long-term traders by indicating support and resistance levels.

Where Will NEO’s Rally Continue? Updated NEO Analysis 15 April

NEO gained strength from the support levels determined in the previous analysis and rose to its current price of $22.66, targeting $25.

Is DYDX Ready to Start a New Rally? Latest DYDX Analysis 15 April

Following its recent fall, DYDX rebounded strongly to $2.28, and it is indicated that if it can sustain 3-day candle closes above this resistance level, the upward trend may continue.

Is Solana in a Long-Term Buy Zone? Current SOL Analysis 15 April

Following its recent decline to $118, Solana surged back to $145 with robust purchases; for long-term investors, the $132.40 to $121.36 range is seen as potential buying areas.

Will ARB Start Its Ascent? Latest ARB Analysis 15 April!

According to the analysis of ARB coin, staying above $0.98 could set it on a path to reach $1.90.
Celal Mutlu
Celal Mutluhttps://coinotag.com/
Celal Mutlu is a young Satoshi reflection at the age of 21. His favorite characters are CZ and Vitalik, and he has a great sense of humor. Celal is a keen follower of developments in the world of cryptocurrency and keeps up with the latest news and trends.
spot_imgspot_imgspot_imgspot_img

Bitcoin Price Surge Predicted: Analyst Sees BTC Hitting $650,000 Fueled by ETFs

Get the latest insights on Bitcoin's potential trajectory – could the dominant cryptocurrency surpass gold's market cap and reach new heights?

Bitcoin Halving to Spark Supply Shock, Says Samson Mow – Omega Time Ahead?

Influential Bitcoin advocate Samson Mow offers a bullish outlook on Bitcoin's future, citing the upcoming halving and growing ETF inflows as key drivers. Here's why he believes the current market turbulence could lead to a surge in BTC price.

Bitcoin Price Plunge Continues: Analysts Predict Further Drops to $59K

Bitcoin's rollercoaster ride continues, with experts weighing in on where the bottom might lie. Get the latest price analysis, predictions, and insights into what these movements could mean for your crypto portfolio.