The legendary creator of the widely used Bollinger Bands indicator, John Bollinger, made a significant statement on his personal social media account that caught the attention of the cryptocurrency world. Bollinger suggested that the selling pressure on Bitcoin (BTC) could soon end, implying that a rise could take its place.
According to the Inventor of Bollinger Bands, Bitcoin’s Decline May Be Coming to an End
Bitcoin’s impressive surge above the $42,000 level on January 26 excited cryptocurrency investors. After the rise, Bitcoin was unable to maintain this level and pulled back to $41,429, but it shows signs that the recovery will continue. At the time of writing this article, the largest cryptocurrency is trading at $41,858, up 1.50% in the last 24 hours.
Evaluating the current state of Bitcoin, John Bollinger, the legendary creator of the Bollinger Bands indicator, hinted from his personal social media account that the selling pressure causing the downturn could soon end and an uptrend could begin. According to Bollinger, the strong selling pressure that has hit Bitcoin and prevented its rise could disappear very soon.
Bitcoin Outflows from Grayscale’s GBTC Continue
As is known, after the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs on January 10, the price of the largest cryptocurrency rose to $49,000. The excitement caused by this surge that raised expectations quickly turned to disappointment as Bitcoin began to fall sharply. The outflows of substantial amounts of BTC from Grayscale Investment’s GBTC, which was converted to a spot ETF following the SEC’s approval, were a major trigger for the decline.
Investors in GBTC, especially due to the excessively high fund management fee compared to their peers, began selling their GBTC shares to switch to spot Bitcoin ETFs issued by BlackRock, Fidelity, VanEck, Ark Invest, and other Wall Street hedge funds, and the sales continue.
In particular, the end of the mandatory waiting period that locked GBTC customers’ BTC during the spot ETF approval motivated investors to act. This led to mass exits from GBTC. Interestingly, Grayscale Investment itself has also been selling substantial amounts of Bitcoin recently.
