Bitcoin Price Predicted to Decline Further as Grayscale’s BTC Trust Liquidates

Bitcoin Price Predicted to Decline Further as Grayscale’s BTC Trust Liquidates

Cryptocurrency analyst and enthusiast, Chris J Terry, recently shared his insights on the price action of Bitcoin, predicting a continuous decline in the price of the leading cryptocurrency. Terry took to the social media platform X (formerly Twitter) to express his thoughts, anticipating a possible “continuation of a flat or declining trend.” His analysis is based on the assumption that the downtrend will persist until Grayscale Bitcoin Trust (GBTC) is fully liquidated. According to Terry, this liquidation will require a staggering $25 billion worth of selling activity over the next few weeks.

Terry cited Grayscale’s decision to maintain Bitcoin ETF fees at 1.5% as the underlying cause for what he sees as the “biggest strategic error” in the history of cryptocurrencies. He believes that this choice by Grayscale may have a long-term impact on the overall crypto market and hinder wider adoption. Terry emphasized the interconnectedness of investment vehicles and how their actions can influence the state of the cryptocurrency market as a whole. In a social media post, he wrote, “Looks like the BTC price will continue flat/down until GBTC is liquidated, $25B of selling over the next few weeks. Grayscale’s decision to keep ETF fees at 1.5% will go down as the biggest strategic error in crypto history. Greedy idiots.”

However, Chris Terry’s analysis has attracted disbelief from prominent figures within the cryptocurrency community, such as Galaxy Digital CEO Mike Novogratz. Novogratz expressed his disagreement with Terry’s analysis, stating that while he anticipates some selling pressure, he believes investors will move to other ETFs, particularly those supporting BTCO. Novogratz further highlighted the Invesco Galaxy Bitcoin ETF (BTCO) as his favorite among these products. He emphasized the importance of maintaining perspective in light of transient market conditions and noted that the recent development may encourage older investors, or “boomers,” to enter the crypto landscape. Novogratz also mentioned the potential for enhanced leverage through 4×5 exposure to Bitcoin via BTCO. Despite the current market conditions, he remains optimistic, stating, “BTC will go higher in the next six months after this indigestion.”

A recent report from Coinshares revealed that Bitcoin experienced an outflow of $25 million. According to Coinshares’ weekly “Digital Asset Fund Flows,” there was also a substantial $11.8 billion in BTC trading volume in the previous week. This trading volume is seven times higher than the average weekly trading activity recorded in 2023. Notably, ETFs accounted for 63% of all Bitcoin volumes on reliable exchanges. The report also highlighted notable withdrawals from digital asset investment products, totaling approximately $24.7 million.

As of the time of writing, Bitcoin is trading at $40,827, indicating a decline of 2.16% in the past day. However, its trading volume has seen a significant increase of over 81% in the last 24 hours. Despite the recent price drop, the cryptocurrency continues to attract significant trading activity.

Chris J Terry’s analysis suggests a continuous decline in the price of Bitcoin as Grayscale Bitcoin Trust liquidates. However, not everyone within the cryptocurrency community agrees with Terry’s outlook. Figures like Mike Novogratz express their disbelief and provide counterarguments to support a more optimistic perspective. The recent outflow of funds and the significant increase in BTC trading volume indicate a dynamic market influenced by various factors. As cryptocurrency enthusiasts navigate these market conditions, it is essential to conduct thorough research and exercise caution when making investment decisions.

Bitcoin

Articles You May Like

The Impact of Oklahoma’s Crypto Rights Legislation
The Future of Crypto Investments: Exploring the Potential of VR ICOs
The Coinbase Outage Debacle: A Deeper Look
Crypto Analysts Predict a Bright Future for XRP Price

Leave a Reply

Your email address will not be published. Required fields are marked *