price Bitcoin rose this week, Touching the highs Not seen since the bull run of 2021. But will it continue?
The news has Projection A US bankruptcy judge has granted bankrupt cryptocurrency lender Genesis permission to sell $1.6 billion of Grayscale Bitcoin Trust (GBTC) shares. The idea is to repay creditors who have been waiting for their money since the lender went bankrupt.
Just last month, the pressure was on from Grayscale Huge amounts of whipping From cryptocurrencies to their custodian, Coinbase, led to relegation In BTC price.
So it's natural to wonder if the same thing will happen again when the Genesis finally goes on sale.
“There is at least $1.4 billion of selling coming from GBTC based on the Genesis bankruptcy and the situation with Gemini, and perhaps more than that,” confirmed James Seyphart, a business intelligence analyst at Bloomberg. Decryption. “But we also don't know how much has actually been sold.”
First, some background: Genesis is a subsidiary of Digitalency Group (DCG) that has been allowing people to earn interest on their cryptocurrencies.
He. She foot went bankrupt one year ago, revealing exposure to He collapsed Cryptocurrency investment fund Three Arrows Capital. After Megabrand encryption FTX went bankrupt In 2022, Genesis is finally here I froze Customer withdrawals.
Creditors are still waiting for the money they held in the product, and DCG said creditors will be compensated. The plan approved by a judge this week would allow her to repay creditors.
However, experts do not believe that the price of Bitcoin will be severely affected.
“Personally, I don't expect to buy [iBitcoin Trust shares] “We will continue like this for the rest of the year, but at the same time, if you asked me two weeks ago, I would not have expected the flows to be as strong as they were,” Seyphart said. “It's anyone's guess, but the entire suite of Bitcoin ETFs — specifically the nine newborn funds — had a huge success in the first month.”
Eric Balchunas, ETF expert at Bloomberg, said: Decryption Although it is possible that the Genesis sell-off could have a negative impact, the ETFs have “shown some real strength,” which could prevent a major Bitcoin sell-off.
After a decade of rejecting Bitcoin exchange-traded funds, the Securities and Exchange Commission decided in January consent 10 products. They began trading on January 11 and were a Thunderous successand amass billions in assets under management.
“The level of liquidity and resilience we have seen in Bitcoin over recent weeks is a testament to the high level of demand in the market,” said Miguel Morell, CEO of blockchain data company Arkham Intelligence.
He added that he “didn't expect it.” [the Genesis news] To impact far beyond what we have already seen.
Finally, Julio Moreno — head of research at market and blockchain data analysis firm CryptoQuant — agreed that “higher demand for Bitcoin from Bitcoin ETFs” is more than enough to mitigate any downside pressure.
“It could be bearish for the price on the margin — in fact, we saw a 5% price drop on the day FTX sold $1 billion worth of GBTC shares,” Moreno said. Decryption. “However, the effect may be limited given [that] The market is already anticipating this sale.”
CryptoQuant data also shows reHe added that unrealized profits are relatively low for Bitcoin holders in the short term, which may also indicate reduced selling pressure.
Edited by Ryan Ozawa.
