A highly regarded cryptocurrency analyst has asserted that the optimism displayed by Bitcoin (BTC) enthusiasts regarding Grayscale’s recent legal triumph over the U.S. Securities and Exchange Commission (SEC) is overly buoyant and may not be the catalyst for the anticipated bull market.
In a newly conducted strategic analysis, Nicholas Merten, the presenter of DataDash with an audience of 511,000 subscribers on YouTube, conveys to his viewers that the relatively subdued price movement of the primary cryptocurrency subsequent to the announcement of Grayscale’s legal victory suggests that the significance of this event might not be as substantial as perceived by BTC proponents.
“The price exhibited a mere 6% surge following the ostensibly favorable outcome against the SEC, an outcome that many believed would unquestionably pave the way for a Bitcoin spot market Exchange-Traded Fund (ETF). This modest 6% uptick falls short of recuperating the losses incurred on August 17, a time when the crypto sphere was relatively devoid of significant news…
Hence, the conundrum: Why does Bitcoin, in light of this ostensibly momentous news tailored to Bitcoin and not other cryptocurrencies like XRP, struggle to reclaim its 200-day and 200-week moving averages?
This juncture was seemingly ideal for eradicating all short positions, and liquidating bearish sentiments to propel the market to new all-time highs. Frankly, if this were an unequivocal triumph, the market would have swiftly priced it in.”
In a distinct communication on the social media platform X, Merten imparts to his 113,800 followers that the marginal increase in BTC’s price could suggest an inadequate demand for a spot market BTC ETF at present.
“Pause… Grayscale ostensibly secures victory in its legal battle with the SEC, yet Bitcoin experiences a mere 4.75% price elevation?! This situation evokes memories of a prior ‘victory against the SEC!’ that eventually waned due to underlying complexities or simply the lack of enthusiasm for an ETF. Bulls would be wise to hope this scenario differs…”
In the past week, a federal judge issued a ruling that compels the SEC to reevaluate Grayscale’s petition for launching a Bitcoin ETF, citing the need for consistency in its decisions. Grayscale initially filed a lawsuit against the SEC in June 2022, alleging discriminatory treatment in the rejection of their ETF application.
As of the current writing, Bitcoin is exchanging hands at $27,228, reflecting a marginal decline over the past 24 hours.
Read Also: Bloomberg Analysts Predict 75% Probability of Bitcoin ETF Introduction in 2023
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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