Despite Grayscale’s victory, it is unlikely to prevent Bitcoinfrom ending August with negative monthly returns, analysts said. BTC was above $29,000 earlier this month and is currently hovering above $27,000.
Bitcoin’s performance in August has created uncertainty about what it will do in September. August saw record-low volatility, declining trading volumes, and a flash crash that saw prices drop into the $25,000 region.
James Butterfill, director of research at CoinShares, said August’s price drop highlighted Bitcoin’s vulnerability to larger transactions, which has been exacerbated by the current low transaction volume.
Market indecision will characterize early September, Butterfill predicts. He expects traders to vacillate between excitement about the potential approval of the ETF application and doubts about the approval by the U.S. Securities and Exchange Commission (SEC).
While Wednesday’s court ruling favored Grayscale, Butterfill said it was unlikely to speed up the timeline for SEC approval because an appeal is still possible.