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April 18, 2024
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Grayscale’s 100K Sell-Off Shakes Bitcoin: Can the Price Recover?


In a significant development within the crypto space, Grayscale, major player in crypto asset management and a key issuer of Bitcoin Spot ETFs, recently completed the sale of a substantial 100,000 BTC. This strategic move has not only showcased Grayscale’s influence but has also significantly affected Bitcoin’s trajectory, causing it to drop to a 3-month low of $38,240.

Read on about this.

Unloading 100,000 BTC

Grayscale Investments, a prominent entity in the crypto industry, observed a noteworthy reduction in its spot Bitcoin ETF holdings due to this move. The sale, totaling approximately $3.98 billion, resulted in a 22% decrease in the firm’s assets, dropping from 619,220 BTC to around 519,220 BTC.

As spot Bitcoin ETFs continued trading post-approvals, the market experienced significant downturns triggered by a notable contraction in reserves following Grayscale’s Bitcoin sell-off. As anticipated, Bitcoin retreated to the $38,500 support level.

Remarkably, Grayscale’s reduction in Bitcoin holdings accounts for a significant 60% of the reserves collectively held by nine recently established Bitcoin trading companies. Market attention is now on these emerging players as speculation surrounds the depth of their reserves.

Read More: Not All Approved Spot Bitcoin ETFs Will Survive : Says Grayscale CEO

Bitcoin Rebound on the Way?

Some industry experts present a contrarian perspective, suggesting that Grayscale’s substantial sell-off might pave the way for a Bitcoin price recovery. Despite Grayscale’s massive sales, other ETFs, excluding Grayscale, observed an inflow of 108,117 BTC, indicating ongoing net inflows even after Grayscale’s sell-off.

BlackRock’s iShares spot Bitcoin ETF, holding a significant reserve of 39,925 BTC, emerged as the second-largest holder after Grayscale. Its substantial holdings are seen as a potential buffer, helping alleviate the selling pressure triggered by Grayscale’s sell-off.

Future Outlook

Amidst this market turbulence, industry analysts anticipate a surge in institutional interest in Bitcoin, particularly post-SEC’s ETF approval. The upcoming halving event, poised to cut miner sales in half, adds another layer to the narrative. With ETF-supported supply scarcity in the cards, speculators suggest that Bitcoin prices could see an upward trajectory by 2025.

As of the latest update, Bitcoin’s price hovers at $39,981, reflecting a marginal 0.6% drop in the last 24 hours and a 7% decrease in the past seven days.

This Might Interest You: Weekly Spot Bitcoin ETF Report: Insights After Its First Trading Week



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