Grayscale Slows BTC Outflows, Analysts Say
Blockchain analysts have revealed that Grayscale, the fund manager and subsidiary of Digital Currency Group (DCG), has significantly reduced its Bitcoin outflows. According to figures shared on Twitter by Arkham Intelligence, Grayscale transferred over 4,400 BTC to Coinbase, its custodian, in the past day. Although this amounted to under $200 million in current BTC prices, it was less than half of the average daily volume from the previous week. Previously, Grayscale had been offloading much larger amounts of digital coins, resulting in a drop in cryptocurrency prices. However, it now seems that the institution may be nearing the end of its selling spree.
Grayscale’s Shift to Coinbase
Grayscale began transferring its BTC holdings to Coinbase for selling after converting its fund into a Bitcoin exchange-traded fund (ETF) on January 10. Prior to this conversion, Grayscale operated as a closed-end fund, requiring investors to hold their shares for at least six months. Since becoming an ETF, investors have been eager to redeem their holdings. The approval of BTC ETFs initially caused a surge in Bitcoin prices, briefly reaching around $49,000 per coin. However, the subsequent movements by Grayscale resulted in a price drop. Despite this volatility, Bitcoin’s price has risen by 11% over the week and is currently at $43,535.
Hot Take: Is Bitcoin on an Upward Trajectory?
With the recent rise in Bitcoin’s price and Grayscale slowing down its BTC outflows, there is speculation about whether Bitcoin is on an upward trajectory. While the approval of BTC ETFs initially had a positive impact on prices, the subsequent movements by Grayscale caused some instability. However, with a weekly increase of 11%, Bitcoin’s price shows potential for further growth. Investors and industry observers are now closely monitoring the situation, wondering if Grayscale’s selling spree is coming to an end and what impact it will have on the cryptocurrency market.
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