A widely followed crypto analyst says Bitcoin (BTC) bulls are overly optimistic that Grayscale’s recent legal victory against the US Securities and Exchange Commission (SEC) could fuel the next bull market.
In a new strategy session, Nicholas Merten, the host of DataDash, tells his 511,000 YouTube subscribers that the king crypto’s lackluster price action following the announcement of Grayscale’s victory indicates that the event may not be as big of a win as BTC’s. bulls thought.
“We only saw a move of just 6% after an alleged victory against the SEC, which is supposed to somehow guarantee that a Bitcoin spot market ETF is just around the corner. [which] tells me everything I need to know. A move of only 6%, not even making up for the losses of August 17, when we didn’t have much news in the crypto space…
So, what gives? Given this supposedly phenomenal news, which focuses on Bitcoin and not XRP, why is it that Bitcoin is unable to regain its 200-day moving average and 200-week moving average?
This is when we should have knocked all the shorts out of their positions, this is when we should have liquidated all those bears out of the market and rise to new all-time highs. Honestly, if so [was] Such a slam dunk, the market will price that in pretty quickly.”
In a separate post, Merten tells The 113,800 followers on social media platform X show that the marginal price increase of BTC may indicate that there is currently not much demand for a BTC ETF in the spot market.
“Wait…Grayscale supposedly wins its case against the SEC, but Bitcoin is only…up 4.75%?! This smells like another ‘victory against the SEC!’ that will eventually fade away because there is either a catch or simply no need for an ETF. Bulls better pray it’s not the second…”
Earlier this week, a federal judge ruled that the SEC must reconsider Grayscale’s application to launch a Bitcoin ETF to remain consistent. Grayscale initially sued the SEC in June 2022, alleging that the regulatory agency’s rejection of their ETF application was discriminatory.
Bitcoin is trading at $27,228 at the time of writing, down fractionally over the past 24 hours.
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