Bitcoin Breaks $28K Ahead of Gray Scale Lawsuit Win
Bitcoin has risen above $26,500 and $27,000. BTC has tested the $28,000 resistance level and is now correcting lower towards $27,000.
Grayscale Investments emerged victorious against the U.S. Securities and Exchange Commission (SEC), fundamentally altering the landscape for cryptocurrency Exchange Traded Funds (ETFs). This article delves into the details of the legal battle and the ripple effects it could have on the crypto market.
Following the news, the price of Bitcoin began to rise steadily. BTC gained momentum broke through the $26,500 resistance zone and ascended towards $28K.
Grayscale's Win Took Bitcoin Past $28K
Grayscale Investments, a prominent asset management firm, achieved a significant triumph as a federal appeals panel ruled in its favour. The SEC's rejection of Grayscale's endeavour to convert the Grayscale Bitcoin Trust into a Bitcoin (BTC) ETF was deemed unjustified and vacated.
The aftermath was electric: Grayscale Bitcoin Trust saw a remarkable 17% surge, and Coinbase Global shares leapt by 16%, fueled by investor optimism and renewed confidence.
The legal clash began in October 2022, highlighting the ongoing fervour surrounding spot Bitcoin ETFs. Grayscale, in a bold move, wrote an open letter to the SEC, advocating for the approval of spot BTC ETF applications.
The case gained momentum, and the asset management firm engaged legal experts from Davis Polk to reinforce its stance. The essence of the argument was that approving spot BTC ETFs would be more advantageous.
Grayscale's Transformative Opportunity
The legal verdict opens the door for Grayscale's Bitcoin Trust (GBTC) to evolve into a spot BTC ETF. The court's directive instructs the SEC to review the application, signaling a potential transformation in the realm of crypto ETFs.
However, the SEC retains the option to appeal the ruling within 45 days. Such an appeal could lead to further legal proceedings, potentially involving the Supreme Court or an en banc panel review. Alternatively, the SEC could scrutinize the application on different grounds.
Grayscale's triumph is not limited to its own products but reverberates throughout the crypto sphere. The ruling raises the possibility of setting a precedent for other spot ETFs.
Notably, financial heavyweight BlackRock, which had previously faced SEC resistance, could gain new momentum. The asset manager refiled its application for a spot bitcoin ETF after the SEC expressed dissatisfaction with previous applications.
Bitcoin Price Analysis
As per CoinStats, Bitcoin is currently trading at $27,454.68, up 5.51% in the previous 24 hours, with a live market cap of $535B. It has a circulating supply volume of 21,000,000 BTC coins and a maximum supply volume of 21,000,000, with a 24-hour trading volume of $98B.
Source: CoinStats
The price rose steadily, and it even broke through the $27,500 resistance zone. It finally tested the $28,000 resistance level. A high near $28,150 has been achieved, and the price is now reversing gains. Below the $27,800 barrier, there was a slight decrease.
The price was trading below the 23.6% Fib retracement level of the upward run from the swing low of $25,927 to the high of $28,150. Bitcoin, on the other hand, is still trading above $26,500 and the 100 hourly Simple moving average.
If the price rises again, immediate resistance will be about $27,650. The first significant resistance is located near the $28,000 level. A decisive move above $28,000 might push the price up to $28,500.
Source: TradingView
Conclusion
Grayscale Investments' legal triumph against the SEC marks a pivotal moment in the crypto industry's trajectory. The ruling's significance extends beyond Grayscale, potentially reshaping the landscape for crypto ETFs and influencing market sentiment.
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