News View Non-AMP

Grayscale Sells $41M In Bitcoin Amid BTC’s $47K Struggle: Impact On Bull Run?

Published by
Shayan Chowdhury

Grayscale, one of the leading digital asset management firms, has reportedly sold $41 million worth of Bitcoin. This significant transaction comes at a time when Bitcoin price is experiencing upswings, halting the current momentum near the $47K mark. Nevertheless, the selling pressure on Bitcoin triggered by GBTC’s outflow could be reduced as other ETF providers are actively increasing their Bitcoin holdings in their portfolios.

Grayscale Moves Total $83 Million In BTC

Bitcoin initiated a notable rally yesterday, climbing to $45,000 for the first time in a month. The next 12 hours maintained a positive trajectory, sending the cryptocurrency to surpass $47,000, marking another monthly high. This rapid increase in Bitcoin’s value resulted in the liquidation of positions, amounting to over $155 million.

Amidst an exponential surge in BTC’s price, Grayscale has acted strategically by reallocating positions worth approximately $83 million, with $41 million in BTC being transferred to Coinbase for sale.

This action contributed to a $1,000 fluctuation in Bitcoin’s price around the $47K mark. Notably, Bitcoin’s price saw a liquidation of $8.2 million in the last hour, with the majority being buyers’ liquidations, totaling about $5.2 million. Concurrently, BTC’s price is undergoing a correction, falling below $47K.

Concerns are rising over potential further outflows from GBTC in the coming days, as traders set their sights on a short-term target of $50,000. The outflow from Grayscale’s Bitcoin ETF could intensify as companies facing bankruptcy liquidate their holdings and the fund loses its edge in liquidity compared to its competitors.

Genesis is set to request permission from the court of the Southern District of New York to sell off approximately $1.6 billion worth of GBTC shares held by Grayscale. This move comes after FTX redeemed nearly $1 billion from the same fund in January.

Since its transition to an ETF on January 11, Grayscale’s GBTC has seen liquidation of over $6 billion.

Will This Impact BTC Price?

Grayscale’s dominance came to an end on Feb. 1 when BlackRock’s iShares Bitcoin Trust (IBIT) and ProShares’ Bitcoin Strategy ETF (BITO) became the first of the nine ETFs to surpass GBTC’s trading volume.

As Grayscale proceeds with the reduction of their GBTC holdings, other ETF providers are actively adding Bitcoin to their portfolios, maintaining the overall netflow in positive territory.

The amount of Bitcoin sent out by Grayscale’s GBTC totals approximately 1.7K BTC, valued at around $83 million. This marks one of the lowest figures to date.

Contrastingly, netflows into ETFs experienced a substantial surge, with an increase of $405 million. This continues a streak of 10 consecutive days with positive net inflows.

Should significant inflows continue and the netflow stays positive, Bitcoin may avoid big price corrections. Nonetheless, any such corrections could trigger holders to engage in panic selling.

Shayan Chowdhury

Shayan is a digital nomad and a professional journalist. He delivers high-quality engaging articles to Coinpedia through his in-depth research and analysis.

Recent Posts

Trump Tariffs Live: Bitcoin Price Rallies To $87000 On ‘Liberation Day’

Cryptocurrency markets are experiencing fluctuations as traders brace for President Donald Trump's "Liberation Day" announcement,…

April 2, 2025

Grayscale Announces Launch of Two New Bitcoin ETFs: Here’s What They Are

Grayscale, a leading crypto asset manager, has introduced two new Bitcoin ETFs, offering a fresh…

April 2, 2025

Remember This Name! Remittix Presale Becomes the Top Predicted of 2025 as Project Raises Almost $15M in Record Time

In a year marked by conservatism and a sentiment shift in crypto, one name is…

April 2, 2025

Has Elon Musk Forgotten About Dogecoin (DOGE)?

Particularly for Dogecoin (DOGE), Elon Musk, the billionaire entrepreneur CEO of Tesla and SpaceX, has…

April 2, 2025

Shiba Inu Drops 9%, but RUVI AI’s (RUVI) Token Might Be the Meme Coin Killer as Investors Rush to Claim their Bonus

The cryptocurrency market is no stranger to ups and downs, and this week, Shiba Inu…

April 2, 2025

XRP Stalls at $2—Is Ozak AI ($OZ) the Next Big Crypto Breakout?

XRP has struggled to break past the $2.5 mark despite strong market momentum. Meanwhile, Ozak…

April 2, 2025