Sell Pressure for Bitcoin Might Be Zero Next Month as GBTC Sets to Unlock 16K BTC

It would become a decisive game between Bitcoin bulls and bears in July as Grayscale gears to hold the biggest one-day unlocking event so far. The unlocking would take place on the 19th of July and would turnout an interesting development for the digital asset. Over 16,000 units of Bitcoin would be unlocked within the said day. 

The Grayscale Bitcoin Trust (GBTC) holds over $24 billion in assets under management, a revered giant in BTC accumulation. As Bitcoin positions at $40,000, the entire cryptocurrency market has eyes on the buyers and sellers of GBTC. The possibility of enhanced volatility of the leading crypto asset might be imminent as the institutional cashout date draws near. 

As a trust, GBTC features a periodic closure whereby funds locked up within an initial period are released for investors to cash out at certain times. The Times are dependent on when the investor bought into the asset. According to current values, the unlocking event of 16,000 BTC would tune-up to $627 million.

The Effect of the Grand Unlocking to Bitcoin’s Volatility 

The interesting turn of the anticipated unlocking event is the coincidence of the buy-in price trading at a discount to the spot price. This is regarded as a negative GBTC Premium and would function as a turning point for the value of the leading crypto asset. It is expected that the resultant volatility of Bitcoin after the unlocking would crack down longstanding resistance lines.

A popular pseudonymous trader Loomdart asserted on Twitter that selling pressure on BTC would stabilize as a result of the development. With the unlocking, a dramatic counterpoint would take place and provide a fresh standpoint for otherwise bearish indicators for institutional investors. 

Views and opinions expressed are solely those of the author and not of The DeChained or any affiliated party. Views or opinions expressed in this article (or any article on the website) are not financial advice. Articles are for informational purposes only. The author and The DeChained may hold positions in assets discussed in this or other articles.
Related Posts