Bitcoin, a type of digital money, has gone up by about 7% and reached over $27,000 ($27,645). This is a notable change from being around $26,000 for many weeks.
A few things have contributed to this rise. First, a court decision favored Grayscale against the US SEC regarding a review of a Bitcoin ETF. Second, recent not-so-good economic data in the US makes it less likely for the Federal Reserve (Fed) to raise interest rates in September. This has also added positivity to the situation.
The US courts sided with Grayscale in its legal fight against the Securities and Exchange Commission (SEC). The SEC had said no to Grayscale’s plan to make a Bitcoin spot exchange-traded fund (ETF). The U.S. Court of Appeals Circuit Judge Neomi Rao ordered that Grayscale’s request to review the decision be accepted and that the SEC’s denial be canceled.
Back in June, the SEC rejected Grayscale’s request to change its main investment product, Grayscale Bitcoin Trust (GBTC), into an ETF. They argued that the plan didn’t follow rules meant to prevent fraud and keep investors safe. Grayscale quickly took the SEC to court, saying the SEC was being random in rejecting plans for spot Bitcoin ETFs when they had already approved Bitcoin futures ETFs like ProShares’ BITO.
Investors have been watching Grayscale’s case against the SEC closely because it could shake up a market that has been calm and not very active. Just a few weeks ago, the volatility in Bitcoin trading hit its lowest point in over four years. Investors have been waiting for more clear rules on cryptocurrency, either from new laws in Congress or the chance of a Bitcoin spot ETF getting launched.
The court’s ruling declared, “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.” They said this unequal treatment of similar things is against the law. So, they accepted Grayscale’s request to review and canceled the SEC’s decision.
‘Bad News is Good News’
Another reason Bitcoin is going up is because of recent not-so-good economic data in the US. This has also caused stock markets to go up because it makes it less likely for the Federal Reserve (Fed) to increase interest rates in September.
Yesterday was a classic “bad news is good news” situation. There was a drop in the number of US JOLTS job openings to under 9 million jobs in July, the lowest level in over two years. There was also an unexpected drop in consumer confidence in August. This made people more cautious about risk in the US and around the world. The weak data made the Fed less likely to make changes and supported the idea that they won’t raise rates in September. It also made it more likely that there won’t be a rate hike in November.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
Author
