Crypto markets pumped $65 billion following the news that a court ruled in favor of Grayscale in its lawsuit challenging the SEC’s decision to deny conversion of its GBTC fund to an ETF.
The big move has reversed the recent bearish sentiment as market analysts and observers are now eyeing the next bull cycle.
On Aug. 30, MN Trading CEO Michaël van de Poppe asked the big question: Will the Grayscale news push markets into a bull cycle?
Bitcoin Bulls Are Back
He added that the fear and uncertainty has been dissipated and momentum has returned:
“Loads of hype and momentum back in the markets as the expectations for an ETF are increasing massively with this news.”
The #Bitcoin ETF is closer than we think & the bull market too.
Sometimes the markets feel heavily ‘manipulated’. Sometimes the markets are heavily skewed towards sentiment and that sentiment can switch easily.
Will the news of today on Grayscale push the markets in a bull? 👇… pic.twitter.com/v81OFkJjmU
— Michaël van de Poppe (@CryptoMichNL) August 29, 2023
The premise of a spot Bitcoin ETF is also bullish, but the SEC, which is smarting from its loss, may lash out and is likely to postpone or deny all applications and filings.
Bloomberg Intelligence ETF analyst James Seyffart said something similar regarding SEC aggression towards the industry:
“It wouldn’t surprise me if they lean on something related to custody to still deny these things if they *REALLY* don’t want these things to list.”
Michaël van de Poppe added that most of the gains have been for BTC, which was to be expected.
“Bitcoin dominance bounces upwards as the interest is currently massively skewed towards Bitcoin and not towards altcoins. That’s standard.”
“[The] reality is there was no break in market structure to justify the overly bearish sentiment,” commented CrediBULL Crypto.
Meanwhile, Will Clemente exclaimed, “This is one of the biggest days for Bitcoin in its history.”
Industry executives and leaders were also bullish following the news.
🚨 JUST IN 🚨
Thank you to everyone who has been on this journey with us, especially our investors. We are grateful for your support and…
— Sonnenshein (@Sonnenshein) August 29, 2023
Not So Fast …
Bitcoin added more than 5%, or around $2,000, in the hours that followed the big news announcement. However, it has already started to fall back slightly during the Wednesday morning Asian trading session.
This suggests that even an event of this magnitude isn’t enough to propel markets above the heavy resistance that has been blocking them for most of this year.
Bitcoin tapped $28,000 in its highest move since the big fall on Aug. 17. However, it has retreated 2% since that intraday peak to settle at $27,425 at the time of writing.