Bitcoin (BTC) rose 6.2% yesterday to close above the 200-DMA for the first time since January.
‘Landmark’ win for crypto
The appeals court ruled that the SEC’s rejection of Grayscale’s Bitcoin ETF application was “arbitrary and capricious.”
The SEC had initially declined Grayscale’s GBTC (Grayscale Bitcoin Trust) application, citing concerns that the products were insufficient in preventing fraudulent and manipulative practices.
In response, Grayscale pursued legal action, and the recent ruling has overturned the SEC’s decision.
In a court filing on August 29, U.S. Court of Appeals Circuit Judge Neomi Rao granted Grayscale’s petition for review and vacated the SEC’s order denying the listing application for GBTC. Judge Rao had previously criticized the SEC for not providing an adequate explanation for its decision against Grayscale.
Still, it’s important to note that this court ruling doesn’t guarantee the eventual listing of a Grayscale spot Bitcoin ETF. Citi analysts say the decision “makes the advent of a spot Bitcoin ETF more likely.”
“Recent court decisions plus advancing legislation globally are helping sentiment,” the analysts wrote in a report.
Bernstein analysts believe the decision is another “landmark win” for the crypto sector.
“This ruling likely clears the path for a spot Bitcoin ETF and gives Grayscale a fair chance to be reviewed along with other 7 applicants (Blackrock, Fidelity, Invesco, Valykrie, ARK, Van Eck, Bitwise),” the analysts wrote.
Bitcoin price prediction for September
Bitcoin price gained more than 6% on Tuesday to close above the 200 daily moving average for the first time in almost nine months. The price action is now coming back lower to re-test the broken resistance.
A close above this important technical indicator could attract more buying activity with the 200-DMA ($28,465) acting as the next important resistance level. The key target for the bulls in September remains the 2023 high near $32,000.
“[The] move higher is associated with upturns in our short-term indicators, supporting follow-through in the coming days within the context of bitcoin’s trading range,” said analysts at Fairlead Strategies.
“However, our intermediate-term indicators still point lower, supporting more consolidation in the coming weeks, similar to late May/early June. Initial resistance is at the 50-day MA (~$28.8K), and secondary resistance is at the weekly cloud, near $31.9K.”
Bitcoin is still down 6.3% in August.
Source: Cryptocurrency - investing.com
