After surging by 7% late last week on the news of Grayscale’s significant SEC win, the price of Bitcoin has stabilized and returned to its pre-rally levels, hovering around $26,000. The excitement surrounding increased cryptocurrency exposure through ETFs now appears to have been short-lived, as indicated by the market intelligence platform Santiment.
Last Sunday, cryptocurrency traders were elated by the positive resolution of the SEC lawsuit, which fueled optimism that more crypto investment vehicles would soon become available to investors through traditional financial channels.
However, as outlined in Santiment’s latest report, the price of Bitcoin has since retraced back to $26,000, erasing the gains initially spurred by the perceived victory for Grayscale. This price action underscores the “buy the rumor, sell the news” dynamic.
The hype surrounding Grayscale’s victory has dissipated, and it seems that the impact of the SEC ruling was somewhat overestimated. Despite the promise of greater mainstream adoption of cryptocurrencies, the conversion of Grayscale into an ETF did not provide a lasting boost to Bitcoin’s market value.
Of course, the cryptocurrency market seldom follows a straightforward trajectory. September has historically been a volatile month for Bitcoin, and this time may prove to be no different, according to Santiment’s analysis of on-chain and social metrics.
For now, the euphoria over Grayscale’s success has waned. However, with upcoming ETF proposals and Bitcoin’s propensity for wild price fluctuations, crypto investors should brace themselves for what could be a rollercoaster month ahead.