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Grayscale Initiates Transfer of 9K Bitcoin to Exchanges, Hinting at Impending Sell-Off

Bitcoin
HANZO
Jan 17, 2024 at 06:03 am

On Tuesday, the announcement of Grayscale's transfer of an additional 9,000 bitcoins to an exchange initially triggered a decline in Bitcoin prices. This move follows a broader trend of net selling observed after the conversion of the Grayscale Bitcoin Trust (GBTC) to a spot exchange-traded fund (ETF).

Data from Arkham Intelligence indicated that the bitcoin transfer took place in batches of 1,000 shortly after 14:30 UTC, aligning with the opening of the U.S. stock market after the three-day weekend.

Grayscale's GBTC experienced net outflows after securing regulatory approval for a spot ETF the previous week. Investors opted to divest for various reasons, including the elimination of the discount to net asset value and the appeal of lower fees provided by competing ETFs.

The outflows prompted Grayscale to sell 2,000 bitcoins last week, and this number has since surged to 11,000. Consequently, GBTC's total holdings now stand below 610,000 BTC.

The Grayscale news triggered a nearly 2% drop in Bitcoin (BTC) prices, briefly falling below $42,100. However, the cryptocurrency rapidly recovered, reaching $43,100 at the time of reporting. The market's swift rebound indicates resilience amid the shifting dynamics influenced by Grayscale's strategic moves.

Read More: Grayscale's Milestone: Launching the Inaugural Spot Bitcoin ETF for Trading

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