The largest crypto by market capitalization was stuck at $26,600.
He Bitcoin experiences a notable increase in its value, registering an increase of 7% and exceeding the mark of the $27,000, reaching US$27,645. This increase brings relief to investors, since the cryptocurrency came out of the tobacconist $26,000 for several weeks. Multiple factors contribute to this rebound.
The value of the crypto for this Wednesday, August 30 is $27,359a value that had not reached since the middle of the month, but far from the maximum value in a month that was $30,168.6.
Firstly, a favorable decision in the dispute between Grayscale and the United States Securities and Exchange Commission (SEC) revived optimism around Bitcoin. US Circuit Court of Appeals Judge Neomi Rao, ordered review of the application grayscale to establish an exchange-traded fund (ETF) of bitcoin spot and overturned the SEC’s earlier denial. This resolution unleashed the enthusiasm of investors by removing regulatory barriers that held back the expansion of the cryptocurrency.
It should be remembered that in June, the SEC had rejected Grayscale’s proposal to convert its prominent fund, Grayscale Bitcoin Trust (GBTC), in an ETF of Bitcoin cash. The decision was based on concerns about regulatory compliance and investor protection. grayscale filed a lawsuit alleging arbitrariness in the SEC’s decision, especially in comparison to the ETF’s prior approval of Bitcoin futures.
Bitcoin market volatility had decreased in recent days due to regulatory uncertainty. Investors had taken a cautious stance awaiting greater regulatory clarity, which could come from both new legislation in Congress and the possibility of launching a Spot Bitcoin ETFs. The resolution of the litigation between Grayscale and the SEC has brought this much-needed clarity, reviving interest and activity in the market.
Bitcoin: bad news, good news
Another factor that has contributed to the impulse of Bitcoin it is the publication of bad macroeconomic data in the United States. These data have cooled the prospects for a rate hike by the Federal Reserve (Fed) in September. The unexpected drop in job offers and consumer confidence has led to analysts to believe that the Fed could choose not to raise rates in the near future. This has generated positive sentiment in the market, as investors believe that the absence of a rate hike could be beneficial for Bitcoin and other financial assets.
“Yesterday was a typical ‘bad news is good news’ day. Risk sentiment in the US and around the world was boosted due to an unexpected drop in JOLTS job offers in the US, below 9 million jobs in July, the lowest levels for more than two years, and an unexpected drop in consumer confidence in August. Weak data kept Fed hawks on the sidelines and reinforced expectations of a September pause, as well as tipping the odds in favor of a no-raise in November“, explains Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Source: Ambito
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