Bitcoin Price Soars in the Wake of Grayscale’s SEC Lawsuit Triumph

Bitcoin price has been in the green over the past 24 hours, breaking above the crucial level of $27,265.50 amid improved crypto market sentiment. Bitcoin’s total market cap has jumped by more than 6% over the last day to $534 billion, with the total volume of the asset traded over the same period up by more than 184%. At press time, Bitcoin was trading at $27,450 after climbing by more than 6% over the past day.

SEC vs Grayscale

Bitcoin price has posted significant gains over the last day, recovering some of the losses made over the past few weeks. The BTC price surged after the US Court of Appeals for the DC Circuit ruled in favor of the crypto investment giant Grayscale against the US Securities and Exchange Commission (SEC). The court ruled that the SEC was wrong to deny Grayscale clearance to convert its Bitcoin trust to EFT.

Bitcoin’s price jumped more than 7% following the news, lifting cryptocurrencies broadly as well as crypto equities higher. Investors and other market participants have been closely watching the Grayscale versus SEC lawsuit as a fundamental catalyst that would restructure the cryptocurrency market hauled by low volatility and liquidity. The cryptocurrency market was in the green on Wednesday, with the global market cap jumping by more than 5% to $1.09 trillion and the total crypto market volume increasing by 132%. Bitcoin’s dominance has also improved over the same period to 48.85%.

Investors have been waiting on the sidelines for more clarity amid the global regulatory crackdown on the industry. Earlier this month, Bitcoin’s trading volatility dipped to its lowest level in more than four years, prompting a decline in risk appetite. Even so, the recent ruling may increase the chances that the SEC will approve other Bitcoin EFT applications, including that of Fidelity, BlackRock, Wisdom Tree, and Invesco among others, pumping liquidity into the crypto market.

In the ruling, the court said, “The denial of Grayscale’s proposal was arbitrary and capricious … The Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscale’s proposed bitcoin ETP … We, therefore, grant Grayscale’s petition for review and vacate the Commission’s order.”

The ruling also comes as a relief to crypto market participants who have been frustrated by the Wall Street regulator’s insistence on regulating by enforcement. The US regulatory crackdown on the cryptocurrency sector, including SEC’s lawsuits against major crypto exchanges Binance and Coinbase, has been weighing on the market.

Bitcoin Price Prediction

The daily chart shows that the Bitcoin price has made some significant recovery over the past few hours, starting a fresh bullish breakout above $27,000. Bitcoin has moved slightly above the 200-day exponential moving average but remains below the 50-day EMA. Its Relative Strength Index (RSI) has jumped above the signal line but remains slightly below the neutral zone. The Bollinger Bands have widened further, indicating an increase in volatility.

Even so, the court ruling is not enough to sustain the bullish trajectory in the immediate term. As such, bulls need to gather enough momentum to push the BTC price higher. A flip above the 50-day EMA at $28,200 might prompt further gains. On the other hand, a drop below the immediate support at $27,265.50 will invalidate my bullish thesis.

BTC Price Chart