- The world’s largest cryptocurrency, Bitcoin
(BTC), continues to face strong selling pressure from Grayscale after the sale of GBTC shares.
- Analysts emphasize the interconnected nature of investment instruments and their overall impact on the cryptocurrency landscape.
- Novogratz highlights the importance of not losing sight of the big picture considering short-term market dynamics.
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Could Grayscale’s intensive Bitcoin sales be preventing the rise of BTC prices? What do experts say?
Grayscale Bitcoin ETF Asset Sales Continue
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The world’s largest cryptocurrency, Bitcoin (BTC), continues to face strong selling pressure from Grayscale after the sale of GBTC shares, causing the BTC price to drop by 2.72% to $40,400. However, the same money is swiftly moving into newly launched Bitcoin ETFs, which have raised over $27 billion in just one week.
In the recent analysis by Chris J Terry, insights are provided about the current state of Bitcoin (BTC) prices, predicting the continuation of a flat or downward trend. According to Terry, this trend will persist until the completion of the Grayscale Bitcoin Trust (GBTC) liquidation, with an estimated $25 billion in sales activity expected in the coming weeks.
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Terry considers Grayscale’s decision to maintain ETF fees at 1.5% as a significant strategic mistake. He suggests that this move could have lasting consequences on the market and negatively impact broader adoption. The analyst’s observations highlight the interconnected nature of investment instruments and their impact on the overall cryptocurrency landscape.
However, Grayscale CEO Michael Sonnenshein disagrees with the view that high GBTC fees lead to strong liquidations. Galaxy Digital CEO Mike Novogratz holds a different opinion. While acknowledging the possibility of some selling activity in GBTC, Novogratz believes that a significant portion of investors will transition to other exchange-traded funds and makes a notable suggestion for BTCO.
Novogratz emphasizes the importance of not losing sight of the big picture considering short-term market dynamics. He also notes that this development will make it easier for older investors (baby boomers) to enter the cryptocurrency market and mentions the opportunity to gain 4-5 times leverage against Bitcoin through BTCO. Despite the current market digestion, Novogratz remains optimistic about the future of Bitcoin, predicting a decrease in difficulties and an increase in Bitcoin’s value in the next six months.
BTC Price Expectations
A recent analysis by On-chain College draws attention to Bitcoin’s 111-day moving average, a fundamental short-term indicator in Pi Cycle analysis. The analysis involves aligning this moving average with BTC’s short-term holder cost basis. While Bitcoin is experiencing a range trading period, On-chain College points out that the gap between these two indicators is narrowing.
According to the analysis, if the cryptocurrency’s price drops further, the level to watch closely is in the range of $37.7K to $38.1K. This level is defined as a critical level providing information about possible support or resistance dynamics based on the convergence of these fundamental indicators.