The post Grayscale’s 100,000 Bitcoin Sell-Off End – Is This a Sign of Bitcoin Bouncing Back? appeared first on Coinpedia Fintech News
Grayscale, a major player in crypto asset management and a key issuer of Bitcoin Spot ETFs, recently concluded the sale of 100,000 BTC. This move appears to have intensified selling pressure on BTC, resulting in Bitcoin dropping to a 3-month low of $38,240.
Grayscale Finised It’s Selling
Grayscale Investments witnessed a significant reduction in its spot Bitcoin ETF holdings, with the sale of approximately 100,000 BTC, amounting to $3.98 billion. This led to a 22% decrease in the firm’s assets, falling from 619,220 BTC to around 519,220 BTC.
Following the approvals of spot Bitcoin ETFs continue to trade, with significant market downturns prompted by a large reserve contraction due to GBTC sales. Bitcoin retreated to the $38,500 support level as expected.
The drop in Grayscale’s Bitcoin stash is about 60% of what nine new Bitcoin trading companies are holding. Now, attention is on how much other companies have in their reserves.
Bitcoin on the Road to Recovery?
Some experts present an alternative view, suggesting that with Grayscale’s 100,000 BTC sale concluded, Bitcoin’s price may experience a recovery. Despite Grayscale’s sales, other ETFs, excluding Grayscale, saw an inflow of 108,117 BTC, indicating ongoing net inflows even after GBTC’s sell-offs.
BlackRock’s iShares spot Bitcoin ETF, holding 39,925 BTC, follows Grayscale with the second-largest BTC reserve, likely mitigating the selling pressure from the former’s sale.
Meanwhile, institutions are likely to increase their interest in BTC post-SEC’s ETF approval, and considering the upcoming halving event that will cut miner sales in half, ETF-supported supply scarcity could drive prices up by 2025.
As of now, Bitcoin’s price is at $39,981, which is a 0.6% drop in the last 24 hours and a 7% drop in the last seven days.