price of Bitcoin There has been a sudden increase this week, emotional high note Not seen since the 2021 bull market. But will it last?
The news is Dropped A U.S. bankruptcy judge has granted bankrupt crypto financial firm Genesis permission to sell $1.6 billion worth of shares in Grayscale Bitcoin Trust (GBTC). The idea is to pay back creditors who are waiting for cash after the lender goes bankrupt.
Just last month, pressure from grayscale huge whiplash You hand over your cryptocurrency to its custodian, Coinbase. led to a crash At the price of BTC.
So even if the Genesis eventually goes on sale, it's natural to wonder if the same thing will happen again.
“Given the Genesis bankruptcy and Gemini situation, there will be at least $1.4 billion worth of selling from GBTC, and probably more,” said James Seifert, a business intelligence analyst at Bloomberg. did. Decryption. “But we don't know how many have already been sold.”
First, some background. Genesis is a subsidiary of Digital Currency Group (DCG), which allowed people to earn interest on their cryptocurrencies.
that It has been submitted Due to bankruptcy a year ago, folded Three Arrows Capital, a virtual currency venture fund.After crypto mega brands FTX went bankrupt Genesis in 2022 frozen Customer withdrawal.
Creditors are still waiting for cash locked away in the product, and DCG said creditors will be fully recovered. The plan approved by a judge this week will allow him to repay his creditors.
However, experts believe that the price of Bitcoin will not be hit too hard.
“Personally, I don't expect to buy it.” [iBitcoin Trust shares] It's going to stay like this for the rest of the year, but at the same time, if you had asked me a few weeks ago, I wouldn't have expected the currents to be this strong,” Seifert said. . “It’s anyone’s guess, but the entire group of Bitcoin ETFs, the newborn nine, had a very successful first month.”
Eric Balchunas, ETF expert at Bloomberg, said: Decryption He said that while the Genesis sell-off could have a negative impact, the ETF has “shown its real strength” and may prevent a significant drop in BTC.
After a decade of rejecting spot Bitcoin ETFs, the Securities and Exchange Commission in January approved 10 products. They started trading on January 11th, explosive successamassing billions of assets under management.
“The level of liquidity and resiliency we've seen in Bitcoin in recent weeks is evidence of strong market demand,” said Miguel Morell, CEO of blockchain data firm Arcam Intelligence. ” he said.
He added: “I wasn't expecting it.” [the Genesis news] It will have far too many implications beyond what we have already seen. ”
Finally, Julio Moreno, head of research at on-chain and market data analytics firm CryptoQuant, agreed that “increased Bitcoin demand from Bitcoin ETFs” is more than enough to ease downward pressure. .
“It can be bearish at marginal prices. In fact, the price fell 5% on the day FTX sold $1 billion worth of GBTC stock,” Moreno said. Decryption. “However, the impact may be limited.” [that] The market is already anticipating this sell-off. ”
CryptoQuant data alsoHe added that unrealized gains for short-term Bitcoin holders are relatively low, which could also indicate less selling pressure.
Edited by Ryan Ozawa.
