Bitcoin Hodlers Be Aware: Big Players Are Cashing Out Of The Crypto Market
In the recent video, the popular crypto channel Altcoin Daily discusses Grayscale investors cashing out due to Grayscale unlock dates and its correlation to Bitcoin price.
At the start of the video, the analyst updates news on Bitcoin price, saying that the current price level has the highest level of on-chain volume since $10.3K.
“We are building a very strong support at this level. And this is positive and as long as we stay above this, it’s bullish”.
Yet, Bitcoin prices remain under pressure in the $30,000-$40,000 zone as traders brace for the 16,000 BTC worth of GBTC shares unlocking in July.
According to the channel, GBTC shares were scooped up by investors at around 40% premium in December 2020. The month saw Grayscale Bitcoin Trust attractive inflows of $2 billion, followed by $1.7 billion in January.
“That means about 140,000 Bitcoin worth of shares will get unlocked by the end of July. And that is a potential sell pressure”.
About 139,000 Bitcoin have already been released between mid-April to mid-June, a period that also coincided with spot BTC/USD’s crash from around $65,000 to as low as $28,800.
Altcoin Daily highlights that one of the major concerns is that Grayscale’s premium remains negative for months. For the time being, there are two possible options for investors: One is to liquidate their share at a premium when the market price at the time of sale crosses above the native asset value, or they can dump their GBTC holdings.
“The speculation is that if the GBTC goes positive again, that will be an open door for all the share pressure on the 6-month unlocked investors. And to my mind, this will be a buying opportunity for us”, the crypto channel shares
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