CryptoQuant, an analytics platform, has suggested that the selling pressure from Grayscale in Bitcoin could persist until April. However, they also argue that Grayscale is not the sole cause of the decline in BTC’s price.
Following the approval of the Spot Bitcoin ETF, BTC experienced a significant drop, falling to $40,000. CryptoQuant considers this drop to be a result of the “news sell” event triggered by the ETF approval. They point to various on-chain indicators that indicate the correction may not be over yet, suggesting that a new rally is not currently on the agenda.
Julio Moreno, Research Manager at CryptoQuant, addressed the common belief that Grayscale was responsible for the decrease. He clarified that while Grayscale was indeed selling Bitcoin, other ETFs were purchasing a total of around 72,000 Bitcoins. Moreno attributes the sales to short-term Bitcoin investors taking profits and large BTC holders selling.
He emphasizes that the current Bitcoin price correction cannot be solely attributed to Grayscale, stating, “The selling came from Bitcoin holders (short-term traders and whales) who took profits after last year’s rally (ETF approval was a ‘sell the news’ event).”
Furthermore, Moreno believes that the GBTC exit is a temporary event and expects the decline to eventually subside as the market adjusts to Bitcoin ETFs.
According to CryptoQuant’s data, if Grayscale continues to sell at a steady rate of 10,000 Bitcoins per day, it is estimated that GBTC could exhaust its Bitcoin holdings by early April 2024. Currently, Grayscale holds 566,973 Bitcoins.
It is important to note that this text does not provide investment advice.