Grayscale’s Conclusion of 100,000 Bitcoin Sell-Off – Could This Indicate Bitcoin’s Rebound?
Grayscale, a major player in the management of crypto assets and a key issuer of Bitcoin Spot ETFs, recently completed the sale of 100,000 BTC. This transaction seems to have heightened the selling pressure on BTC, resulting in Bitcoin dropping to its lowest point in three months at $38,240.
Grayscale Concludes Sale of Bitcoin
Grayscale Investments experienced a significant decrease in its holdings of spot Bitcoin ETFs, as approximately 100,000 BTC were sold, amounting to $3.98 billion. This led to a 22% reduction in the company’s assets, which decreased from 619,220 BTC to around 519,220 BTC.
Grayscale has sold 100,000 Bitcoin. The selling is nearly complete!
— Ran Neuner (@cryptomanran)
January 24, 2024
Following the approval of spot Bitcoin ETFs for trading, there have been significant market downturns caused by a substantial contraction in reserves due to the sale of GBTC. As expected, Bitcoin retreated to the support level of $38,500.
The decrease in Grayscale’s Bitcoin holdings accounts for approximately 60% of the reserves held by nine new Bitcoin trading companies. Now, attention is focused on the reserves of other companies.
Bitcoin on the Path to Recovery?
Some experts present an alternative perspective, suggesting that with the conclusion of Grayscale’s sale of 100,000 BTC, Bitcoin’s price may experience a recovery. Despite Grayscale’s sales, other ETFs (excluding Grayscale) saw a net inflow of 108,117 BTC, indicating ongoing positive flows even after the sell-offs of GBTC.
BlackRock’s iShares spot Bitcoin ETF, which holds 39,925 BTC, follows Grayscale as the entity with the second-largest BTC reserve, potentially alleviating the selling pressure resulting from Grayscale’s sale.
Meanwhile, institutions are likely to increase their interest in BTC after the SEC’s approval of ETFs, especially considering the upcoming halving event that will reduce miner sales by half. The scarcity of supply supported by ETFs could drive prices up by 2025.
Currently, Bitcoin is priced at $39,981, reflecting a 0.6% drop in the past 24 hours and a 7% drop in the past seven days.