A cryptocurrency analyst has expressed caution about Bitcoin (BTC) bulls’ optimism regarding Grayscale’s recent legal victory against the U.S. Securities and Exchange Commission (SEC) potentially triggering the next bull market. Here are more details about the issue.

Bitcoin’s performance is addressed

In a strategy session for his 511,000 YouTube subscribers, Nicholas Merten, the host of DataDash, noted that Bitcoin’s lackluster price performance following Grayscale’s win suggests that the event may not be the significant victory that BTC bulls were hoping for.

After the supposed victory against the SEC, Bitcoin only saw a 6% increase which makes him doubt that a Bitcoin spot market ETF is coming soon.

This increase was not enough to recoup the losses from August 17th when there wasn’t much news in the crypto space. It’s unclear why Bitcoin, which received positive news, can’t reclaim the 200-day and 200-week moving averages.

This was the moment when shorts should have been knocked out of their positions and bears should have been liquidated. If it was such a sure thing, the market would have priced it in by now.

On social media platform X, Merten addressed their 113,800 followers in a separate post. They suggested that Bitcoin’s recent small increase in price may indicate a lack of demand for a BTC ETF in the spot market.

Merten expressed doubts about the recent news of Grayscale’s supposed victory against the SEC, as Bitcoin only increased by 4.75%.

They felt that this victory may ultimately fade, either due to some catch or because there is simply no desire for an ETF. Merten advised bulls to hope for the best.

Earlier this week, a federal judge ruled that the SEC must reconsider Grayscale’s application to launch a Bitcoin ETF in order to maintain consistency.

Grayscale had previously sued the SEC in June 2022, alleging discrimination in the rejection of their ETF application. As of writing, Bitcoin is trading for $27,228, with a fractional decrease over the past 24 hours.

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