Bitcoin price retreated after yesterday’s impressive surge and continues to wait at a critical level. Friday was crucial for investors. It was not surprising that the excitement in the Bitcoin price weakened as it could file an SEC appeal within 45 days as of today. So, what do the experts think about this?
Following Grayscale’s victory yesterday, Bitcoin’s rally came to a halt. The king cryptocurrency is now $1,000 below its local peak of $28,100. MicroStrategy also fell by 2.2% to $373.89. The company’s shares had risen by 10.8% after the decision. Stock investors consider MSTR shares as an unofficial spot Bitcoin ETF due to the massive BTC accumulation. Therefore, the company’s stock price is shaped by fluctuations in Bitcoin.
CryptoQuant data analyst Adam Mourad urged investors to be cautious in light of Tuesday’s decision.
“The cryptocurrency markets are still under pressure. Regulatory uncertainty, macroeconomic concerns, and much more are weighing it down”.
Mourad said that Bitcoin’s recent price break pushed it to the average price level of investors holding BTC for less than 155 days. The Realized Price level is generally seen as a support area. When the price rises above this level, the resistance strengthens due to short-term investors’ profit-taking.
Mourad also noted that recent Bitcoin outflows from exchanges are “common during periods of financial uncertainty.” According to the analyst, more than 20,000 Bitcoins were transferred from exchanges to cold wallets after the recent price increase.
“This maneuver can be interpreted as an attempt to protect the invested capital from ongoing market instability”.
He also said the following in his recent market evaluation:
“The massive increase in open interest underscores the rapid and strong reaction the market has made. The rebuilding of long positions indicates that investor confidence is beginning to increase again.”
Guilhem Chaumont, co-founder of Flowdesk, said the following:
“The launch of Bitcoin ETFs and other crypto financial products should now be much easier. We are confident that the regulatory environment in the US will clarify in the coming months to allow greater institutional adoption.”
Mark Palmer, an analyst at Berenberg Capital Markets, believes that yesterday’s decision created excessive optimism for a spot Bitcoin ETF.
“The decision does not force the SEC to approve it. The court asked the agency to review its decision, and the SEC will reconsider its arguments. Therefore, I believe it is possible for the SEC to develop alternative arguments to justify the continued rejection of spot Bitcoin ETF applications based on concerns specific to the spot Bitcoin market.”
Palmer overlooks an important detail. Since the approval of a Futures Bitcoin ETF was granted in 2021, the SEC will have a difficult time finding new arguments. All these arguments will need to be derived from a difference between the futures ETF approval and the spot one.
The SEC has the option to appeal the decision of the three-judge panel. The commission has 45 days, including today, to request an en banc hearing where the US Court of Appeals for the 17 judges will review Tuesday’s decision in its entirety.