Recently, the moves made by Grayscale, especially with the fall in BTC prices, have attracted attention. Now, the question arises whether a bankruptcy sale could trigger a new wave in the market. Bitcoin has seen a price increase after the declines it experienced since the 2021 bull run. However, it is uncertain whether this momentum will continue.
Permission Granted to Genesis for Bitcoin Sale
A bankruptcy judge in the US has granted permission to the bankrupt crypto lending firm Genesis to sell $1.6 billion worth of Grayscale Bitcoin Trust (GBTC) shares. With this step, Genesis aims to repay creditors pending after its bankruptcy.
Grayscale’s custodian Coinbase selling a large amount of cryptocurrency last month caused a drop in BTC prices. Therefore, it is wondered whether Genesis’s sale will have a similar effect.
Bloomberg intelligence analyst James Seyffart comments on the issue:
“Depending on Genesis’s bankruptcy and the situation with Gemini, a sale of at least $1.4 billion from GBTC is expected. It will likely be more. However, it is unknown how much of this sale has occurred.”
Will Bitcoin Price Be Affected?
Experts believe that the Bitcoin price will not be significantly affected by this sale. Seyffart indicates that he does not expect the remaining Bitcoin Trust shares to continue in a purchase-focused manner. However, he emphasizes that he did not expect the flows to be this strong until a few weeks ago.
ETF expert Eric Balchunas says that ETFs are strong and could prevent a large BTC sale. The Securities and Exchange Commission approved spot Bitcoin ETFs, which saw significant interest. CEO of blockchain data firm Arkham Intelligence, Miguel Morel, stated that he does not expect “the Genesis news to have much more impact than what we have already seen.”
Julio Moreno, the head of research at CryptoQuant, notes that demand from Bitcoin ETFs could alleviate downward pressure. However, considering that the market already expects this sale, he adds that the effect could be limited.
In conclusion, Grayscale’s sale may cause short-term fluctuations in the market. However, experts believe that the Bitcoin price will not be significantly affected by this sale.
