The cryptocurrency market saw a sudden gain on Tuesday after a sustained bearish outlook in the past two weeks. Bitcoin price surged over 5% to temporarily reach $28,000, but had since stabilized around $27,400 during the early Asian market on Wednesday. Ethereum (ETH) price also led the altcoin market in gains with a spike of about 4.3% in the past 24 hours to trade around $1,719.
Bitcoin Cash (BCH) and Toncoin (TON) were among the top altcoin gainers with a spike of about 15% and 12% respectively. As a result, the majority of short traders were liquidated with over $171 million wiped out in the last 24 hours.
The cryptocurrency market received good news after the United States Court of Appeals for the D.C. Circuit paved the way for Bitcoin exchange-traded funds (ETFs). The court argued that the SEC failed to provide enough evidence to support its denial of Grayscale’s application to convert its GBTC to a spot Bitcoin ETF. This is a major victory for the cryptocurrency industry, as it could lead to more institutional investment in Bitcoin.
“The Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscale’s proposed bitcoin ETP,” the court said, referring to exchange-traded products. “In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful.”
Another reason that contributed to Bitcoin price gain is the continued decline in BTC supply on crypto exchanges. This means that long-term holders are buying more coins, even as the price is volatile.
However, the cryptocurrency market still faces regulatory uncertainty. The SEC recently filed a sealed motion against Binance, which includes more than 35 exhibits. This could lead to further scrutiny of the cryptocurrency industry by regulators.
What do you think of the recent gains in the cryptocurrency market? Are you bullish or bearish on Bitcoin?
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