BTC Reclaims $27,000 Price Mark Following Grayscale’s Victory Against SEC

Introduction

BTC reclaimed the $27,000 price mark following the court’s decision in Grayscale’s case against the SEC. Prior to the news, some BTC whales had accumulated a significant volume of the leading coin.

Violent Sell-Offs

On 17 August, unexpected violent sell-offs in the Bitcoin [BTC] market sent the king coin’s price below $25,000 for the first time since 20 June. This deleveraging event resulted in the removal of $2.5 billion worth of open interest from the futures markets within a few hours.

Source: Glassnode

Stagnation and Decline

As sentiment grew poorer, BTC’s price stagnated at $26,000 in the days that followed. On a daily chart, key momentum indicators plunged to two-year lows, suggesting a significant decline in coin accumulation.

Rally Above $27,000

However, during the intraday trading session on 29 August, BTC price rallied above $27,000, regaining its price point prior to 17 August. This surge in price was a result of increased network activity post Grayscale’s victory against the Securities and Exchange Commission [SEC].

BREAKING: There it is, @Grayscale wins their lawsuit against the SEC. DC Circuit court of appeals is vacating SEC’s denial of $GBTC’s conversion into an ETF. pic.twitter.com/gqFvMpmfnm — James Seyffart (@JSeyff) August 29, 2023

A Trip Down Memory Lane

In October 2021, Grayscale Investments filed with the SEC to convert Grayscale Bitcoin Trust (GBTC) into a Bitcoin spot ETF. The SEC denied Grayscale’s request in June 2022, but Grayscale filed an appeal with the federal appeals court. The court ruled in favor of Grayscale and asked the SEC to review its decision.

Bitcoin Holders Are the Biggest Winners

After the court’s decision, BTC’s social activity surged and its value increased by 6% in the last 24 hours. BTC whales may have been aware of the decision before it was made public, as they had cumulatively purchased coins worth $388.3 million a day before the news broke.