- The largest cryptocurrency in terms of market value fell by 2% in the last 24 hours, dropping to $27,210. Meanwhile, Ethereum (ETH) performed slightly better.
- A federal appeals court has ordered a review of the Securities and Exchange Commission’s (SEC) decision to reject Grayscale’s attempt to convert its $14 billion Grayscale Bitcoin Trust (GBTC) fund into a spot Bitcoin exchange-traded fund (ETF).
- The average BTC buy orders reached their highest level since June, which was considered as activity from large investors and was seen as positive news by market observers.
Bitcoin price unable to sustain movement above $28,000, but bull run is not far away; Which factors will be critical?
Bitcoin Unable to Sustain Movement Above $28,000
Bitcoin (BTC) retreated from its peak above $28,000, considering the legal victory of Grayscale against the SEC on Wednesday.
The largest cryptocurrency in terms of market value fell by 2% in the last 24 hours, dropping to $27,210. Meanwhile, Ethereum (ETH) performed slightly better, experiencing a 1.7% decrease and staying just above $1,700 in the last 24 hours. The broader cryptocurrency market experienced an overall 2.4% decline, reflecting the movements of these leading assets.
A federal appeals court has ordered a review of the Securities and Exchange Commission’s (SEC) decision to reject Grayscale’s attempt to convert its $14 billion Grayscale Bitcoin Trust (GBTC) fund into a spot Bitcoin exchange-traded fund (ETF). This sparked a rally in digital asset prices and crypto-related stocks.
Crypto supporters see the court decision as a signal of a potential change in regulatory attitude towards crypto-related financial products that could pave the way for future spot BTC ETFs.
Throughout the summer, many investment firms, including prominent institutions like BlackRock, submitted new or renewed applications to launch BTC ETFs. However, it is important to note that this recent court decision does not guarantee automatic approval for any company seeking to launch Grayscale or similar funds.
Are We on the Verge of a Bull Run?
While it is still early to determine the long-term sustainability of the price increase observed this week, Clara Medalie, Research Director at Kaiko, noted some small signs of a possible minor rebound.
The price increase was associated with relatively moderate trading volume on exchanges compared to previous mini-bull markets. Trading volume showed a limited increase and only reached the highest level in two weeks. This indicates that the recent price increase was not largely supported by market participation.
However, the average BTC buy orders reached their highest level since June, which was considered as activity from large investors and was seen as positive news by market observers.
Medalie said, “An ETF approval wave could definitely be the catalyst for the rise that the crypto market currently needs,” and added;
“We are still in the midst of a turbulent period for the sector, with many bankruptcies and lawsuits ongoing.”
While the possibility of a bull movement driven by ETF approvals may exist in the future, fundamental economic conditions can quickly dampen excitement.
