Grayscale Offloads $41 Million Worth of Bitcoin as BTC Faces Resistance at $47K: Will it Affect the Bull Run?

Grayscale, a prominent digital asset management company, has reportedly sold Bitcoin worth $41 million. This significant transaction comes at a time when the price of Bitcoin is rising, with its momentum stopping near the $47K mark. However, the selling pressure on Bitcoin caused by the outflow of GBTC could decrease as other ETF providers are actively increasing their Bitcoin holdings in their portfolios.

Grayscale has moved a total of $83 million in BTC. Yesterday, Bitcoin started a notable rally, reaching $45,000 for the first time in a month. In the next 12 hours, the cryptocurrency continued to rise, surpassing $47,000 and setting another monthly high. This rapid increase in Bitcoin’s value led to the liquidation of positions, totaling over $155 million.

Amidst the exponential surge in BTC’s price, Grayscale strategically reallocated positions worth approximately $83 million, with $41 million in BTC being transferred to Coinbase for sale. This action caused a $1,000 fluctuation in Bitcoin’s price around the $47K mark. Notably, Bitcoin’s price saw a liquidation of $8.2 million in the last hour, with the majority being buyers’ liquidations, amounting to about $5.2 million. Concurrently, BTC’s price is undergoing a correction and has fallen below $47K.

There are concerns about potential further outflows from GBTC in the coming days, as traders aim for a short-term target of $50,000. The outflow from Grayscale’s Bitcoin ETF could intensify as companies facing bankruptcy sell off their holdings and the fund loses its liquidity advantage compared to its competitors.

Genesis plans to request permission from the court of the Southern District of New York to sell approximately $1.6 billion worth of GBTC shares held by Grayscale. This move follows FTX’s redemption of nearly $1 billion from the same fund in January. Since transitioning to an ETF on January 11, Grayscale’s GBTC has seen over $6 billion in liquidation.

The dominance of Grayscale came to an end on February 1 when BlackRock’s iShares Bitcoin Trust (IBIT) and ProShares’ Bitcoin Strategy ETF (BITO) became the first of the nine ETFs to surpass GBTC’s trading volume. As Grayscale continues to reduce its GBTC holdings, other ETF providers are actively adding Bitcoin to their portfolios, keeping the overall netflow positive.

Today, Grayscale’s GBTC sent out approximately 1.7K BTC, valued at around $83 million. This is one of the lowest figures to date. In contrast, ETFs experienced a significant surge in netflows, with an increase of $405 million. This marks 10 consecutive days of positive net inflows.

If significant inflows continue and the netflow remains positive, Bitcoin may avoid major price corrections. However, any such corrections could trigger panic selling among holders.