- 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’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).
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.
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.
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.