The world of cryptocurrencies continues to surprise, both in its dynamics and complexities. One of the recent events in the Bitcoin market, regarding the confrontation between Grayscale and the US Securities and Exchange Commission (SEC), has sparked a lot of controversy and speculation. Did the owners of large cryptocurrency portfolios know more before the world found out about the official decision?
Data provided by Santiment, a chain-data analytics company, suggests that certain Bitcoin “whales”, individuals holding significant amounts of this cryptocurrency, might have known the potential outcome of the legal dispute between Grayscale and the SEC.
Just before the court’s official announcement of its decision, the owners of large cryptocurrency portfolios (also known as whales and sharks, holding between 10 and 10,000 BTC) accumulated Bitcoins worth $388.3 million. Thanks to quick purchases, they benefited from a 6% increase in Bitcoin’s price. There are suspicions that these investors might have had access to confidential information about the potential outcome of the case, as suggested by their rapid purchasing activity.
In light of the news about Grayscale’s victory over the SEC, the price of Bitcoin returned to the level of $27,000. However, this victory doesn’t guarantee that Grayscale’s Bitcoin Trust will be converted into an ETF in the market – the decision in this matter now needs careful consideration by the SEC.
A separate issue is what Bloomberg Intelligence expert, Mike McGlone, emphasized in one of his tweets. He believes that the price of $30,000 for Bitcoin may become the new $12,000 for this flagship cryptocurrency. McGlone is convinced that the approval of a Bitcoin ETF is inevitable and approaching, despite all the delays from the SEC. However, in the expert’s opinion, the main obstacle for Bitcoin’s further growth is the monetary policy conducted by the US Federal Reserve.
Controversies and speculations in the world of cryptocurrencies are the norm, and the Bitcoin market is a perfect example of this. Events surrounding Grayscale and the SEC show how important transparency and integrity are in this sector. With the further development of blockchain technology and cryptocurrencies, such situations will serve as important lessons for investors and regulators worldwide.
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