Bitcoin News Today: Grayscale's AVAX ETF Bid Could Reshape Crypto Access

Avalanche (AVAX) has been a focal point in the cryptocurrency market as recent developments and market dynamics suggest a potential shift in its price trajectory. As of the latest data, the price of AVAX has dropped to approximately $23.24, reflecting a 7.02% decline in the past 24 hours. This decline outpaces the broader crypto market, which saw a 2.96% drop. The market cap of Avalanche has fallen to $9.8 billion, highlighting the token's vulnerability to broader market corrections [1].

Despite these challenges, there are notable developments that could influence the token's future performance. Grayscale Investments, a major player in the crypto investment space, has filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) to convert its Avalanche Trust into a spot exchange-traded fund (ETF). This move aims to facilitate traditional investors' access to AVAX by allowing them to trade it through standard brokerage accounts [2]. The filing marks another step in Grayscale’s broader strategy to expand its suite of crypto investment products, which includes earlier filings for XRP and DOGE ETFs this year [3].

The potential for Avalanche to rebound is further supported by its growing ecosystem and network activity. The platform now hosts over 700 decentralized applications (dApps) across various sectors, including decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming. This expansion positions Avalanche to surpass Solana and Optimism in terms of raw dApp count. However, the network's usage metrics remain mixed, with daily active addresses currently at 41,200, placing it 12th among Layer 1 blockchains [1].

From a technical perspective, the current price of AVAX is at a critical juncture. The token has recently dropped below the $23.99 level, breaking a key support point. This has triggered algorithmic selling actions, with the 30-day, 50-day, and 100-day simple moving averages closely grouped at $23.68, $23.21, and $21.63, respectively. These metrics suggest that the token is at a pivotal point, with potential for either a rebound or further decline [1].

Cryptocurrency trader Jack Adams has noted the fragile technical setup of AVAX, suggesting that a breakout could occur if the price remains above the weekly exponential moving average (EMA). Adams anticipates a target price of $36 in the coming weeks, but warns that losing the $20 support level could trigger a retest toward $14. This scenario underscores the importance of price stability above critical support levels to maintain bullish momentum [1].

Market volume and open interest data also paint a cautionary picture. The 24-hour trading volume has decreased slightly to $875 million, with open interest across derivatives increasing by 3.3%. This increase indicates that leveraged long positions have been liquidated during the recent dip, raising the risk of further price declines if the downward trend continues. A return to the $25–$26 range could restore investor confidence and potentially push the price toward $30–$36. However, a failure to hold the $20 support level could result in a significant drop to the mid-teens [1].

The recent sell-off follows a strong rally, with AVAX peaking at nearly $26 on August 17 after SkyBridge Capital announced a $300 million asset tokenization project on the Avalanche network. This "buy the rumor, sell the news" pattern has contributed to ongoing selling pressure. Despite this, Avalanche continues to show promise, particularly in its expanding network of dApps and potential adoption across various industries [1].

The broader crypto market has also been influenced by macroeconomic factors, including the Federal Reserve's interest rate decisions and global economic uncertainties. These factors have led to a general decline in altcoin prices, with AVAX underperforming major Layer 1 peers like Bitcoin (BTC) and XRP. The broader crypto market has lost nearly $120 billion in value, with Bitcoin and Ethereum experiencing declines of 2.8% and 3.1%, respectively [1].

In summary, while the current price of AVAX presents a challenging outlook, several factors could influence a potential turnaround. The filing of a spot AVAX ETF by Grayscale, the platform's expanding ecosystem, and the technical indicators all point to a possible bullish trend. However, the token remains vulnerable to broader market corrections and must hold key support levels to maintain positive momentum. Investors are advised to monitor the situation closely, particularly the key support level at $20, as it will be crucial in determining the token's short-term trajectory [1].

Source:

[1] https://www.banklesstimes.com/articles/2025/08/26/avax-price-prediction-breakout-to-36-or-slide-back-to-14/

[2] https://cointelegraph.com/news/grayscale-files-spot-avalanche-etf-ticker-avax

[3] https://www.coinbase.com/price/avalanche