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In less than a day, Bitcoin (BTC) shed nearly all the gains it had accumulated following Grayscale Investments’ court victory against the United States Securities regulator.
On Aug. 29, Bitcoin surged to a two-week high after a judge ruled that the Securities and Exchange Commission (SEC) was “arbitrary and capricious” in its rejection of Grayscale’s spot Bitcoin ETF application.
However, the SEC’s recent decision to delay seven pending spot Bitcoin ETF applications has driven Bitcoin’s price downward, causing a decline of nearly 5% in the last 24 hours.
Data from Cointelegraph Markets Pro indicates that Bitcoin’s price is currently hovering around $26,000, a steep drop from the $27,300 level it had maintained since the Grayscale legal victory.
BTC’s seven-day price chart illustrates the complete erasure of its recent gains. Source: Cointelegraph Markets Pro
The applications from BlackRock, WisdomTree, VanEck, Bitwise, Valkyrie, and Fidelity, along with the joint fund from Invesco and Galaxy, were all delayed by the SEC on Aug. 31.
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The price decline occurred despite some market participants, including Bloomberg ETF analysts Eric Balchunas and James Seyffart, having anticipated the delays.
We’ve now fully retraced back to pre SEC Grayscale Lawsuit Bitcoin price.
Pretty much sums up where the markets at right now. pic.twitter.com/PS4T12uHFh— Ben Simpson (@bensimpsonau) August 31, 2023
The SEC’s delay grants it an additional 45 days to approve, deny, or further postpone the applications.
Related: When will it be too late to invest in Bitcoin?
The next decision deadlines for the ETF applications fall between Oct. 16 and Oct. 19, although the SEC retains the option to extend the decision period to around mid-March of the following year, by which time it will be compelled to make a final ruling.
Nevertheless, Balchunas stated on Aug. 30 that the probability of the SEC approving a spot Bitcoin ETF this year has risen to 75%, up from an earlier estimate of 65%.
He attributed this increase in probability to Grayscale’s court victory, noting that the judge’s unanimous rejection of the SEC’s arguments means the regulator “will struggle to justify further denials as it faces deadlines.”
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