Genesis to Sell $1.3 Billion GBTC Stake: Bitcoin to Brace for Impact?

In a significant development, Genesis Global Holdco LLC, a subsidiary of Digital Currency Group (DCG), has been given the green light by a U.S. bankruptcy court to liquidate around 35 million shares in Grayscale’s GBTC fund. The value of this move is an impressive $1.3 billion, as authorized by Judge Sean Lane, who also allowed Genesis the option to convert these GBTC shares into either Bitcoin or cash.

Dive in for the inside scoop on this bold move.

Genesis is on the Move – Aggressively!

Despite the court approval for Genesis to sell shares worth $1.3 billion in Grayscale’s GBTC, the market seems unfazed. With daily inflows surpassing 500 million dollars, absorbing the new supply appears manageable. Genesis is not stopping there; they plan to divest over 11 million shares from two Grayscale Ethereum Trusts, totaling over $200 million.

Despite objections from Digital Currency Group (DCG) regarding the sale’s timing, citing potential complications pending a court decision on a debt repayment plan, the court approved the transaction. This bold move by Genesis comes at a time when the company is settling a lawsuit with the Securities and Exchange Commission (SEC), agreeing to a $21 million fine.

The lawsuit involved allegations related to Genesis’ participation in the Gemini Earn program, shedding light on the regulatory challenges faced by cryptocurrency companies.

Potential Market Impact

The repercussions of Genesis’ substantial GBTC share sale could influence the cryptocurrency market, potentially affecting Bitcoin’s value. Currently, Bitcoin has bounced back, exceeding $52,000 and crossing the $1 trillion market value mark after a slight dip on Tuesday. With increasing demand for ETFs, some traders are eyeing the $64,000 level in the coming weeks.

Altcoins to Shine?

Swissblock analysts caution against Bitcoin’s slowing momentum despite the ongoing uptrend. Stressing the importance of the $46,000 support level, they express concerns about potential market impacts. Analyst John Gregory predicts that Genesis’ significant sale may exert downward pressure on BTC’s price, especially around the $52,000 to $54,000 resistance range. This could create an opportunity for altcoins to rise during a consolidation phase for Bitcoin.

Read More: Top Altcoins to Stack For 20x Returns As AltSeason 2024 Begins

As Genesis faces these challenges, stakeholders are keenly observing its ripple effect on the broader cryptocurrency ecosystem.