Guessing the game when the GBTC bleeding stops will help push Bitcoin below $39k
A multi-billion dollar speculation game has pushed the price of Bitcoin (BTC) below $39,000 for the first time in nearly two months as investors exited Grayscale Bitcoin Trust (GBTC).
Since successfully switching to a spot Bitcoin exchange-traded fund (ETF) on January 11, GBTC has posted more than $3.4 billion in outflows, with Grayscale then putting billions upon billions into crypto exchange Coinbase Prime – which is up for sale.
However, there are concerns that GBTC's migration still has a long way to go. According to Bloomberg ETF analyst Eric Balchunas, GBTC recorded an inflow of $515 million on Jan. 23 and has now shed about 13 percent of the stock. However, recent statistics indicate that the flow may be decreasing.
Once again the “experts” are wrong that the GBTC flows are over and yet again. #Bitcoin
— Magoo PhD (@HodlMagoo) January 23, 2024
In a poll on X, Balchunas asked users how much more blood would be shed “before the mass exodus ends.” About half of the respondents said this could go between 35-50% – although both Balchunas and Bloomberg ETF analyst James Seifert estimated that this would happen with 25% of the stocks valued.
According to Greyscale's website, there are currently 600.5 million shares with a total of 536,694.9 Bitcoins in safe custody. Meanwhile, data from CC15Capital shows that 82,525 bitcoins have left GBTC since January 10.
Stop your #Bitcoin selling panic just because you see panicked tweets about $GBTC coins being shipped to Coinbase every morning around 9:30am.
All $BTC sold by @Grayscale so far has been stored in other (low fee) ETFs pic.twitter.com/1H3S5FFbnU
— CC15Capital (@Capital15C) January 24, 2024
The latest influx was linked to defunct crypto exchange FTX, which reportedly sold two-thirds of its 22.3 million shares in GBTC in three days of trading. The crypto exchange is understood to still have around 8 million shares, selling for around $281 million.
Related: Spot Bitcoin ETFs Discovered by Arkham On-Chain Addresses
Meanwhile, some observers are worried that Bitcoin may soon start moving from Mt Gox after it is reported that it is contacting loan applicants to complete identity verification for crypto exchange accounts intended to pay Bitcoin and Bitcoin Cash (BCH). ) – another potential pressure on the price of Bitcoin.
According to CoinMarketCap data, Bitcoin is currently at $39,949, increasing by 0.60% per day. The Crypto Fear and Greed Index hit a 100-day low of 48 points on January 24.
Magazine: Bitcoin ETF guru Eric Balchunas has the last laugh on skeptics: X Hall of Flame
