Bitcoin price rally eases as Grayscale calls out SEC for unfair discrimination against its shareholders

Bitcoin price uptrend has lost steam after a rejection from the supply zone between $62,905 and $68,212.
BTC could drop 5% to $60,000 as part of a healthy correction to give sidelined investors a buying opportunity.
A candlestick close below $60K could instigate and extend BTC fall to $50,000.

Bitcoin (BTC) price has suffered a rejection from a multi-year supply barrier, but this correction looks healthy to give sidelined investors and late buyers a chance to buy the dip. Meanwhile, Grayscale is the subject of a new contention with the US financial regulator as it looks to reach a new class of customers.

Also Read: Bitcoin price rally not likely over as institutions deplete BTC OTC supply

Grayscale wants to expand its customer base with spot Bitcoin ETF options

A Reuters report indicates that Grayscale Investments, a crypto asset manager and the issuer of the GBTC spot BTC exchange-traded fund (ETF), is lobbying the US Securities & Exchange Commission (SEC) to approve options on its spot BTC ETF — GBTC. According to Grayscale, this would open the ETF to a new class of investors.

Reuters cites a letter from Grayscale CEO Michael Sonnenshein, who described the SEC rejecting options on its Grayscale Bitcoin Trust (GBTC.P), as an unfair discrimination against its shareholders, adding that the regulator has previously approved options on ETFs tied to BTC futures.

"It is vital to the interests of GBTC and all spot Bitcoin [exchange-traded product] investors to access exchange-listed options on GBTC and other spot Bitcoin ETPs," wrote Sonnenshein, adding that spot BTC ETF options would enable price discovery in the new ETFs’ shares.

In principle, while the ETFs have opened cryptocurrency to more investors, options would allow holders to reserve the right to buy or sell at a predetermined price by a set date. Nevertheless, it is worth noting that considering BTC is deemed a commodity, the US Commodities Futures Trading Commission (CFTC) would also have to weigh in for an approval of spot BTC ETF options.

Bitcoin price outlook as BTC confronts a supply barrier

Bitcoin price tagged the supply zone between $62,905 and $68,212 on Wednesday but was rejected. The level to beat remains the mean threshold, $65,664, marking the midline of the order block. A break and close above it on the daily time frame would confirm the continuation of the trend.

With the supply zone holding as a resistance, the ongoing rejection could see Bitcoin price retest the $60,000 psychological level, giving sidelined and late investors an entry point. This would constitute a 5% slip below current levels.

Nevertheless, the thesis remains bullish as the market continues to favor the upside. This is seen with the northbound inclination of the Relative Strength Index (RSI), showing that momentum is still rising.

If Bitcoin price overcomes the $65,664 midline, BTC could retake its $69,000 all-time high for the first time since 2021.

BTC/USDT 1-day chart

On the other hand, if selling pressure continues, Bitcoin price could revisit the $60,000 threshold, or worse, extend a leg down to $50,000, where traders could buy the dip.

A daily candlestick close below $40,000 would invalidate the bullish thesis by producing a lower low.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.