Grayscale is scheduled to unlock part of its Bitcoin Trust in the coming weeks, allowing shareholders to sell their shares. Opinions on the impact this will have on Bitcoin values are mixed.
While JPMorgan’s study suggests that this is the sole cause for the price increase to $25,000, Kraken Intelligence disagrees.
JPMorgan’s earlier projection has been refuted by Kraken Intelligence analysis. JPMorgan strategists lead by Nikolaos Panigirtzoglou predicted a drop in Bitcoin prices in July late last month. The researchers predicted that Bitcoin will drop to $25,000 due to the forthcoming GBTC unlocking. Kraken Intelligence, on the other hand, has denied this assertion. The unlocking, according to Kraken experts, “will not have a substantial impact on BTC spot markets anytime soon, if at all.”
Grayscale is the world’s largest digital asset fund and one of the largest Bitcoin holding companies. With around 654,600 BTC, the company controls nearly 3% of the overall supply. Bitcoin’s popularity peaked earlier this year, when values hit an all-time high of $64,000. Institutions and retailers alike were flocking to Bitcoin at these highs. The fund was a popular choice, especially among organizations that prefer not to hold digital assets. One of the funds’ characteristics is that they are regularly locked, in this case for 6 months. Only once this time period has passed will GBTC holders be able to sell their shares.
The unlocking is scheduled for later this month, and given the amount of popularity six months ago, the forthcoming event (which will unlock between 16,000 and 40,000 BTC) is expected to be the biggest yet. Analysts are split on the impact it will have on Bitcoin thus far. According to JPMorgan, this might push the already fragile Bitcoin over the edge. According to the financial behemoth, Bitcoin will reach $25,000 during the freefall. Bitcoin is expected to hit $25,000, according to JPMorgan strategists. Unlocking Grayscale GBTC shares
No price changes are expected, according to Kraken Intelligence.
According to Kraken Intelligence, the total GBTC shares that will be unlocked will be close to 40,000 BTC, and the event will have no immediate influence on Bitcoin prices. The 40,000 BTC to be released is worth around $1.36 billion at an average price of $34,000.
Despite the unlocking of 40K BTC worth of GBTC shares in July, market structure suggests that the unlock will not have a major impact on BTC spot markets anytime soon, if at all, as some have stated, according to the experts.
The unlocking comes at an inopportune time, as Bitcoin is exhibiting symptoms of volatility. However, Bitcoin has exhibited excellent support at $30,000 so far, but the unlocking will be its most difficult test yet.
According to our research, the digital asset is currently trading for around $33,000 as we head into the weekend. The asset has primarily been drifting sideways for the past two weeks, with investors unsure about the next move.
Bitcoin is a digital currency (BTC)/n
