Bitcoin (BTC), the top crypto token, has recently retraced from its peak of more than $28,000 witnessed on Wednesday. This is seen at a time when investors deliberated the consequences of the legal triumph of Grayscale against the SEC. The biggest crypto asset in terms of market capitalization saw a 2% slump in the recent twenty-four hours.
Bitcoin Gets Back to the $27.2K Spot After Grayscale’s Recent Court Episode
In the meantime, the other prominent cryptocurrency Ether (ETH) displayed slightly better performance. It fell by 1.7% in the recent time while remaining effective in staying above the mark of $1,700. The wider crypto industry echoed the respective top crypto assets’ movements. In addition to this, the overall market went through a slump of nearly 2.4%.
In a recent famous legal move, the US SEC has received an order from a federal court of appeals. The order says that the SEC must review the rejection of the application of Grayscale. In that application, the popular investment manager attempted to transform the $14B Grayscale Bitcoin Trust into a spot Bitcoin ETF. This spurred a rapid rally in the prices of crypto-related stocks and digital assets.
Crypto supporters consider the court decision as an indication of a likely shift in the regulatory approach toward crypto. This paves the way for the authorization of a spot Bitcoin ETF in the coming time. During the summer, several investment firms filed renewed or exclusive applications for the launch of BTC ETFs.
Price Sustainability Remains in an Uncertain Position
Nonetheless, it is noteworthy that the recent decision by the court does not ensure automatic authorization for any entity like Grayscale to pursue the release of such funds. At present, determining the sustainability of the price elevation for the long term is premature, according to Kaiko’s Director of Research. As per the executive, some little indications exist regarding a slight reversal.
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