Bitcoin Bulls Overly Optimistic About Grayscale’s SEC Victory, Says Nicholas Merten
Crypto analyst Nicholas Merten suggests that Bitcoin bulls may be too optimistic about the impact of Grayscale’s recent legal win against the SEC. Merten points out that Bitcoin’s price only increased by 6% after the announcement, which indicates that the victory may not be as significant as expected. He questions why Bitcoin has not reclaimed the 200-day and 200-week moving averages, which should have happened if the news was truly a game-changer. Merten also suggests that the marginal price increase may indicate a lack of demand for a spot market BTC ETF at the moment.
Key Points:
– Bitcoin’s lackluster price action after Grayscale’s win suggests the victory may not be as big as expected.
– Bitcoin’s failure to reclaim key moving averages raises questions about its bullish momentum.
– The marginal price increase may indicate a lack of demand for a spot market BTC ETF.
– Merten warns that the victory against the SEC may eventually fade or have catches.
– The federal judge ruling requires the SEC to reconsider Grayscale’s Bitcoin ETF application.
Hot Take
While some Bitcoin bulls may have celebrated Grayscale’s legal win against the SEC, Nicholas Merten argues that the victory may not be as impactful as expected. The lackluster price action and failure to reclaim key moving averages suggest that the market may not be as bullish as anticipated. Merten’s cautionary note about the demand for a spot market BTC ETF further adds to the skepticism. It remains to be seen whether Grayscale’s victory will lead to significant changes in the crypto market.
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